@Risk

Scientists at the Joint Research Centre (JRC), the European Commission’s in-house science service, have identified five metals that are both essential for manufacturing low-carbon technologies and at high risk of shortage.

These five metals are: neodymium, dysprosium, indium, tellurium and gallium.

According to the report, titled Critical Metals in Strategic Energy Technologies, the risk of shortage stems from:

• Europe’s dependency on imports (as in the US, virtually the entire European supply of these metals comes from China),
• increasing global demand,
• supply concentration and
• geopolitical issues.

Furthermore, these metals are not easily recyclable or substitutable. (more…)

More new research indicates that global companies are setting their sights on growth and global expansion.

As I pointed out last week, nearly all (95 percent) of the CFOs polled in BDO’s annual Global Ambition Survey said they are optimistic about their global expansion plans.

Now, a new report from KPMG concludes that global manufacturers have made top-line growth their number one priority in the next two years, despite persistent economic volatility and uncertain demand.

KPMG surveyed 220 manufacturing executives from global companies with at least $1 billion in revenue and found that: (more…)

Even though the current economic climate is less than rosy, the 750 CFOs surveyed in BDO’s annual Global Ambition Survey, say they are optimistic about cross-border growth.

A whopping 95 percent of those polled reported they are in a confident mood about their global expansion plans. (Although more than three-quarters (78 percent) concede that the challenges when expanding abroad are greater than those associated with growth at home.)

And, surprisingly, there appears to be little concern about access to credit. More than two-thirds (69 percent) said have no difficulty in gaining funding for expansion.

What does pose a challenge for expansion plans? Finding local people with the right skills and knowledge. More than half (52 percent) of all respondents put finding the right people in their top three areas of focus for international investment. Among those struggling to find the right people, a lack of specialist skills (44 percent) and reliability of staff (33 percent) are key challenges.

In addition, survey respondents cited other challenges, including the intensity of local competition, red tape and bureaucracy. As you might expect, concerns about red tape and bureaucracy remain significant for those targeting the BRIC markets: Brazil 58 percent, Russia 57 percent, China 50 percent and India 43 percent.

In other key findings: (more…)

Many of the digital and “green” technologies that we now take for granted contain certain metals which previously have been of little interest. Consequently, production of these rare earth elements (REEs) is concentrated in a small handful of countries, leaving the global supply at considerable risk.

Just how high is the risk?

A new assessment from the British Geological Survey (BSG) gives us some insight.

BSG’s new ‘Risk List’ ranks the risk to global supply of 52 chemical elements of economic value.  BSG estimated supply risk using the abundance, production and reserves of the element and governance factors for the producing countries and found that: (more…)

To paraphrase an old adage, it appears that sometimes, whatever goes down must eventually come up.

Recently released results from PRTM’s annual auto supply study show that –after experiencing the largest downturn in history –worldwide automobile sales will likely hit a new record in 2011, driven by China’s relentless growth and the US recovery.

Sure, most auto suppliers endured a bumpy road during the past two years.  But the study suggests that European and North American auto suppliers are rebounding with what PRTM calls a “stunning, high-speed recovery.” European and North American auto suppliers increased EBITDA from 2009 to 2010 by 76 percent and 68 percent, respectively, while at the same time, North American suppliers emerged as the most likely global consolidators in 2011.

According to the PRTM study: (more…)