As the new world order is taking shape the digital world is centralising at a rapid speed thanks to AI. But the physical world has never been so divided thanks to geopolitics.
Though in digital production it is less important where the talent resides in physical production, it has to be under the same roof as the plant. This creates the biggest problem that the world faces today, talent shortage.
For instance, TSMC is the largest semiconductor company that has announced massive capital expenditure in various countries. However, the company is facing a large labour shortage at the construction stage itself. For its USA plant it plans to bring in 500 employees from Taiwan and in Japan, it paying higher wages than average while still facing shortage.
Even Intel in Germany needs to train 3000 people but right now it’s only training two. This is the harsh reality of physical production that makes it difficult for companies to expand rapidly while addressing geopolitical changes. But given that, some countries are gaining ground as Apple expands massively in countries like India.
This might make growth over the next 10 to 15 years more volatile than estimated and inflation along with other related issues non-linear as compared to history.