Senior executives in 7 major industry segments worldwide "expect their companies to be affected by minerals and metals supply scarcity in the next 5 years," according to a new report from PricewaterhouseCooper.
The key conclusions of the report are:
- Major manufacturing companies consider minerals and metals scarcity as an important issue for their business, but do not see sufficient awareness of this topic among all their stakeholders.
- The risk of scarcity is expected to rise significantly, leading to supply instability and potential disruptions in the next five years, but this also creates opportunities for competitive advantage.
- Because of the crucial nature of these minerals and metals, companies expect that the impact will be felt throughout the entire supply chain.
- Economic and political drivers of scarcity are generally seen as much more important than physical drivers.
- The renewable energy, automotive and high-tech industries have a high level of co-operation with their first-tier suppliers and customers.
- For a large majority of the companies we interviewed, efficiency and collaboration throughout the supply chain are seen as essential to responding to the risk.
[Thanks to Jamie Caswell at National Mining Association for bringing the report to our attention]