From flexible printed to rigid flex circuit boards, PCB Solutions has a reputation for providing quality craftsmanship and stellar service. We customize and fabricate our circuit boards and components, as well, so you get exactly what you’re looking for when you choose us. While we are most known for our craftsmanship and service, that is only part of our story. We also give back to the community through the Chan Ai Lu Engstrom Memorial Scholarship. Each year, we select one winner for this scholarship. This year, we also want to honor Jordan Gallippo for submitting an outstanding application.
Jordan demonstrates a vast understanding of global economies and the economic structure and predicts that entrepreneurialism will play an important role in the future. We are excited to see if Jordan will be at one of these entrepreneurs who steps out into the global economy, and if so, if it’s in the economics industry. It would not be surprising, given Jordan’s grasp on global economics.
The Future of the Global Economy
When discussing the future of the global economy, one question came to mind. Will we see a faster economic cycle in this millennium whereby we have to cope with recessions reoccurring shorter timeframes? Of course we will go on having recessions, but I don’t think they will be any more frequent than they have been in the past 40 years. It will be astonishing if we ever have a gap between recessions as long as the gap we have just had again. Sometimes it will be a financial crisis, sometimes it will be a war, sometimes it will be a commodity-led crisis. We can’t know what they will be, but they are more than likely to happen.
Past performance is no guide to the future – at least that is the usual caveat for investors. But it’s difficult to make projections without looking back at major trends. The spectrum of the corporate network in 2030 will shift towards the end of heightened complexity. Yet, with an understanding of the drivers of corporate changes, our panel agreed that this complexity can be managed. The corporate ecosystem will be comprised of increasingly virtual ties that will continue to connect ever more specialist and remote businesses. This specialization of businesses will complement and accompany specializations within regions and cities. This will happen in emerging markets as they work their way up the value chain and seek to define their unique selling points (USP). Countries are defining their USP’s much more aggressively than they would have done five years ago. One can see regions of the world, from a Jordan to an Egypt or Malaysia, quickly defining their USP’s – whether it is a call center, a pharmaceutical hub, a financial services hub, telecoms hub and trade facility – to be able to serve those who have wealth, like the Gulf countries.
Entrepreneurialism will be the wave of the future: small businesses will act like a shoal of small fish and become a strong global force in the corporate environment. Smaller companies can get a big footprint through collaboration without the same need for capital, and this will position entrepreneurialism as a currency of growth in the coming decades. In the emerging and developing economies, entrepreneurialism is beginning to take off. This is expected to continue, driven by increased connectivity and lower barriers to doing business globally – again including increased harmonization of regulation between regions. By definition these new small companies will be shopkeepers but at the same time they can provide intellectual capital and operate on a virtual basis with their customers or suppliers. So there could be designers sitting somewhere in Singapore, in Korea, but really providing a service to the manufacturing plants in China.
This would result in a true world of shopkeepers – not dissimilar to today’s world – that will mature into small specialized businesses. And the connections will be loose and reciprocally-structured. Individuals and businesses are increasingly interconnected in this digital age, and the web, combined with new sophisticated devices, is creating open access to a global network of partners, customers, suppliers and ideas.
Corporate structures are constantly evolving. In the 1950s, the structure was typified by big hierarchical companies, Monocultural in Process and Outlook, and with a clear national identity and headquarters. Now, there is a sense that the conglomerate model is no longer required in order to access capital, with the exception of family businesses that choose to retain their independence. There are a growing number of corporate structures that are more fluid and nourished by collaborative networks. The result is a flatter, more global and multi-centered model. By 2030 the success of today’s advanced economy multinationals will no longer rest on their brand names and presence, but on a true multinational understanding of business practices in different areas. Whether they are a federation of business or family businesses, to survive in 2030 they will need to be culturally adaptable. Pacek describes this in terms of executive talent, saying that large businesses will need to be like ‘two-headed monsters’, with separate leaders for advanced and emerging markets.
Different regions have different ways of doing business and cultural understanding and alignment will be a success factor vital for the sustainable growth of federations of businesses consisting of more and closer collaborations of small, specialized businesses. In China and Japan there are different business structures which look more like a partnership. So the entities work together based on an agreement that specifies what each business is going to provide. From a UK legal perspective it looks like a partnership, but with groups of companies that all need to bring together component parts. However, there is a much tighter bond in these business structures than in a mere outsourcing arrangement.
There’s a similar ethos, a similar approach in how each business is going to do things. In all types of businesses, parties will become tied to others in closer collaborative agreements, with more joint venture-type agreements underpinning tighter contractual relationships than in simple outsourcing, yet aligned culturally in the same direction.