What is the story about?
What's Happening?
A report by Prologis highlights that 89% of global executives have experienced energy-related disruptions, with 83% predicting that power reliability will drive the next major supply chain crisis. The report, based on a survey of 1,816 executives, emphasizes the growing power demands driven by AI and the need for resilient supply chains. Executives expect power requirements to increase by 10-50% over the next five years, underscoring the importance of energy reliability in supply chain management.
Why It's Important?
The findings underscore the critical role of energy reliability in global supply chains, particularly as AI adoption increases power demands. Companies are increasingly prioritizing energy resilience to ensure operational continuity and mitigate risks associated with power outages. This shift could lead to significant changes in supply chain strategies, with businesses investing in regional, self-sufficient networks. The emphasis on energy reliability may also influence corporate decisions on facility locations, impacting economic development and infrastructure planning.
What's Next?
Businesses are likely to invest in energy resilience measures, such as backup power systems and energy-efficient technologies, to mitigate the risks of power outages. Policymakers and industry leaders may collaborate to develop strategies that enhance grid reliability and support sustainable energy solutions. The report's findings could drive further research and innovation in energy management, influencing future supply chain practices and policies. As companies adapt to these challenges, the focus on energy resilience will remain a key factor in maintaining competitive advantage.
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