I think we’re all agreed 2009 is going to be a difficult year for business – possibly also 2010 and 2011…
As Richard Brass explains in this issue’s cover story ‘Global warning’
it’s not just economic pressures that buyers have to worry about. The Control Risks Groups’ annual RiskMap forecasts political and security risks that could have an effect on business travellers and impact on security of supply.
Algeria, Cameroon, Iraq, Afghanistan were among the high-risk zones highlighted, as well as the seemingly less likely areas of Trinidad and Tobago and the US. The latter is seen as a particular target in 2009 for terrorists trying to test the mettle of the new president.
The report also warns that volatility in commodity markets indicates the world is testing its limits for food production, mineral refinement an energy extraction. There are also mounting concerns over water availability, infrastructure capacity and institutional integrity, it says.
Analysts says just-in-time principles will be thrown out in favour of building up reserves of supply which will impact on logistics and storage. It may also prompt more buyers to purchase locally instead of from overseas and procurement will be forced to become more strategic.
Does the picture this paints tally with your plans for 2009? Or is your experience quite the opposite? Hit the comments button and let us know.