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Technological advances in modern market infrastructure will affect the economy of the 21st century.
CTA CEO and President Gary Shapiro sat down with Nasdaq President and CEO Adena T. Friedman in the “Great Minds: The Future of the 21st Century Economy” session. Friedman explained that technological developments in modern market infrastructure will affect the economy of the 21st century. Here is a short edited portion of their speech.
Shapiro: You have many conversations with CEOs and clients around the world. What do you think are the most critical areas, opportunities or challenges that leaders are most concerned about?
Friedman: When I talk to CEOs, there are really three key issues that they focus on. The first is the geopolitical landscape and how that is changing supply chain management—the proximity, the regionalization of the economy, and what technologies must be deployed to become more modern in managing their supply chains. I think COVID has exposed some real concerns there. The second is on digital transformation. As you know, every company is trying to become more agile, more tech-savvy so that they can effectively grow with technology as opposed to having people be the engine of growth. Then the third is about people and skills, the need for more technological skills, and generally speaking, we don’t have enough workers for the needs of the companies.
SHAPIRO: Do you seriously think it’s going to be closer and more dual sourced?
Friedman: I do yes. I think every company that is a major manufacturer with a global supply chain is rethinking its supply chain. Transforming your supply chains is a very time-consuming and costly activity. You can do it successfully for a long time – these are like 20-year decisions, not five-year decisions. Many decisions have been made and you are hearing that movement has begun. But it will probably be another five or seven years before you see real change there.
SHAPIRO: You mentioned hiring, which obviously affects everyone. Do you feel it has changed recently or is it softening a bit?
Friedman: There is what the industry calls a “birth shortage” looming. Because of the credit crisis, people had fewer children. If you think about how many people will graduate from high school in 2026 to 2028, there is a 7 to 20 percent drop in high school graduates over that period. This is a serious concern for companies that are highly dependent on people. So, that digital transformation is really important; We don’t have a lot of workers coming into the workforce, at least in America, to use new technologies, to use AI, to use modern technology, to eliminate the need for large-scale hiring over a period of time. That’s the basis of many companies’ decisions to continue investing in technology, even if the economy isn’t perfect right now.
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