January - The news cycle this month has slumped slightly, with many recurring topics from the past few months - such as rising freight costs, quarantines hurting post-pandemic recovery, and other covid-related news.
There was a lot of discussion this month on rising cost of commodities - such as various chemicals, oil, nickel, copper, and lithium. The increase of the various of the latter metal costs are associated with increased demand for batteries in electric vehicles and semiconductors in smartphones, but the supply of these commodities is falling.
Automation was also a hot topic this month - Warehouse automation manufacturer Exotic has raised $335 million in funding. Uniqlo, Nike and Ikea are all investing in warehouse automation to speed up the fulfillment process while still enduring labor shortages. China is also looking to automate more factories to cope with its aging population and the consequent labor shortage. However, there are discussions that automation could exact a toll in inequality; with studies showing that algorithms and robots replacing tasks once completed by humans is responsible for 50%-70% of the economic disparities experienced by 1980 and 2016.
In manufacturing news this month, China’s manufacturing output reached its highest level in the beginning of January - however, the rapid growth is losing traction. Similarly, the U.S has also reached its highest level of manufacturing output since the pandemic. China and the U.S are both showing examples of post-pandemic recovery. In a parallel to all the manufacturing news this month, there is also a significant warehouse shortage both in the United States and in the United Kingdom.
Apple topped sales estimates in the United States, with iPhones being one of the top selling smartphones in Europe throughout 2021. BMW and Tesla are the top selling luxury cars in the United States in 2021. This comes after Tesla has recalled 54,000 cars this month because of issues with their self-driving function. In similar news, Chrysler also plans to have their catalogue of vehicles fully electric by 2028.
In sustainability news, DB Schenker and Lufthansa Cargo welcome Lenovo on their carbon-neutral flights. H&M is also trying to pave a more sustainable slow-fashion path, by adopting new practices within the organization such as resell, rental and subscription services. Smaller clothing brands are also looking to create a more transparent fashion industry with garment tags including information of the entire products supply chain. Additionally, a bill passed in New York is enforcing a more transparent supply chain - prohibiting unethically sourced clothing - retailers will have to disclose factory wages and working conditions.
In other miscellaneous news this month, the WHO finally sees the end of Covid-19 in sight - but soon after doubled down on this comment stating we should not get complacent. China’s covid zero policy is doing more harm than good - with hiccups associated with the Olympics, and recurring factory shutdowns. China has also recently resumed trade with North Korea - the first time since the start of the pandemic. Luxury brands are experiencing a sales boom but are trying to navigate the digital market while implementing the notion of scarcity. Spotify’s stock has dropped on the heels of its Joe Rogan podcast controversy. Indonesia has announced the shift of its capital from Jakarta to a province in Borneo, but its new name is causing some controversy. Finally, the French fry shortage that was mentioned last month appears to have expanded to more countries!
