How technological advances in modern market infrastructure will affect the economy of the 21st century.
Gary Shapiro, CEO and President of CTA, met with Nasdaq President and CEO Adena T. Friedman at the session “Great Minds: The Future of the 21st Century Economy”. Friedman explained how technological advances in modern market infrastructure will impact the economy of the 21st century. Here’s a short edited portion of their conversation.
CTA CEO and President Gary Shapiro (left) and Nasdaq President and CEO Adena T. Friedman
SH`IRO: You have a lot of conversations with CEOs and customers around the world. What do you think are the most critical areas, opportunities or challenges that leaders are most concerned with?
FRIEDMAN: When I speak to CEOs, there are three key areas that they really focus on. The first is the geopolitical landscape and how this is changing supply chain management – nearshoring, regionalization of the economy and what type of technologies need to be deployed to modernize their supply chains. I think COVID exposed some real concerns there. The second concerns digital transformation. As you know, every business is trying to figure out how to become more efficient and tech-savvy so that it can grow more effectively with technology, rather than just having people as the engine of growth. Then the third is about people and talent, the need for a lot more tech talent, and the fact that in general we just don’t have the workforce right now to meet the needs of businesses.
SH`IRO: Do you think there will be more nearshoring and more dual source seriously?
FRIEDMAN: I do, yes. I think any company that is a large manufacturer with a global supply chain is rethinking their supply chain. Converting your supply chains is a very time-consuming and costly activity. You can do this successfully over a long period of time – these are more like 20-year decisions, not five-year decisions. You hear that many decisions have been made and activities are beginning. But it will probably take another five to seven years before you see any real changes.
SH`IRO: You mentioned the attitude that clearly affects everyone. Do you feel like it’s changed lately, or is it getting a little softer?
FRIEDMAN: There’s something the industry is calling the “birth shortage” that’s coming. Because of the credit crunch, people were having fewer children. If you think about how many people will graduate from high school between 2026 and 2028, there is a 7 to 20 percent drop in high school graduates over that period. This is of great concern for companies that rely heavily on people. So this digital transformation is really important; using new technology, using AI, using modern technology to avoid the need for massive hiring at a time when, at least in the US, we don’t have as many workers entering the job market. That’s a basis for many corporate decisions to continue investing in technology, even when the economy isn’t perfect right now.
Subscribe to
For more stories like this and to stay up-to-date on all of our market-leading news, features and analysis, sign up for our newsletter here.
Comments are closed.