One of the most important changes I foresee in the coming year is the diminishing manufacturing cost advantage that China currently has over the U.S. Within the next five years, I believe this gap is going to close due to rising Chinese wages, higher U.S. productivity, a weaker dollar, and other factors. What this means for the industry is that, in all probability, manufacturing will begin to relocate closer to the markets it serves, particularly in the U.S. and Mexico.
So, in 2012, we’ll see a shift in the supply chain network from a manufacturing standpoint, and, in conjunction with various transportation issues, this shift will drive distribution innovations, such as fewer empty miles and more product on trucks and on the roads — and do so in a more cohesive, collaborative way.
Secondly, as the economy begins to recover, we will continue to see an enormous explosion of talent as a wave of highly skilled supply chain management professionals flow into the market. Our universities are turning out top-tier young people who have a more global perspective and diverse skill set than their predecessors. These professionals are adding substantial value to their organizations and making significant contributions to the bottom line.
Logistics and supply chain management are becoming core competencies in progressive, successful companies, both public and private, around the globe. This, in turn, is influencing the caliber of those who have chosen supply chain careers, producing better prepared, more capable professionals who can look forward to a myriad of opportunities to gain entrance to the executive suite.
And CSCMP will continue its mission in 2012 of providing thought leadership and training to professionals at every level, with a special focus on preparing the next generation of supply chain management leaders for the dynamic and rewarding career that lies ahead.