This is the sixth and final installment in our series on where the global economy is heading in 2023. It follows recent articles on industrial action, inflation, energy, food and the cost of living.

The global supply chains that modern companies depend on were turned upside down three years ago after COVID-19 emerged in China. The spread of the new respiratory illness and efforts to slow it resulted in shortages of everything from toilet paper and prescription drugs to refrigerators and semiconductors. Even today, retailers continue to struggle to keep some products, including household items like Tylenol and eggs, in stock. Overall stress in supply chains remains high.

Because shortages, delays and bottlenecks can hurt their bottom line, many companies that didn’t go bust during the pandemic have been rethinking their supply chains and implementing changes to make them more resilient.

As a supply chain expert, I have observed three major shifts in how companies manage their supply chains – changes that will significantly affect consumers and businesses alike.

1. Bringing supply chains home

One of the main downsides of having supply chains that span the globe is that they are more vulnerable to problems outside of a company’s control, such as an earthquake that strikes a key supplier or a citywide lockdown that shuts down factories.

That’s why companies in every industry have been working to relocate suppliers and production facilities closer to home or geographically spreading them out so that they’re not so dependent on one country or region. The goal is to ensure they can withstand disruptions and maintain business continuity.

The pace of reshoring – the process of shifting production and manufacturing to domestic locations from overseas factories – has surged in recent years. Over 60% of European and U.S. manufacturing companies expect to reshore part of their Asia production in the next three years, according to a survey conducted in early 2022.

A more recent survey found that U.S. transport and manufacturing reshored about 350,000 jobs in 2022, up 25% from the previous year.

This trend not only has support from government subsidies but retailers as well. Walmart, one of the world’s biggest retailers, has committed to help its suppliers reshore by increasing its purchases of U.S.-made products by US$350 billion over the next decade. In the U.K., a survey of 750 small businesses found that 2 in 5 are considering switching to domestic manufacturers to avoid COVID-19 disruptions and high shipping costs.

At the same time, other companies are trying to diversify their sources of supply, often away from China, which until recently was regularly locking down whole cities to maintain its now-lapsed zero COVID-19 policy. India and Vietnam are popular destinations.

U.S.-based Apple, for example, frustrated by product delays in China, where 98% of its iPhones are made, recently started producing models in India. In addition, Foxconn, its largest supplier, agreed to expand production in Vietnam. Overall, U.S. manufacturing orders from China are down 21% since August 2022.

In Europe, carmaker Volvo announced in July plans to open its first European factory in 60 years in Slovakia. And leaders of the U.S., Mexico and Canada are meeting to discuss ways to encourage more investment in the region, which may result in more reshoring.

2. Investing in more technology

One of the biggest issues when the COVID-19 pandemic began was that companies often didn’t know what was going on with their suppliers because of poor technology. For example, prior to the pandemic, over 50% of companies didn’t communicate with or know the locations of all their suppliers, making it difficult to anticipate shortages.

Companies have since learned, if they didn’t already know, that being able to see what is happening along their supply chains is critical to avoiding and adapting to disruptions. And modern digital technologies are key to making this happen.

This includes everything from state-of-the-art software to better communicate with suppliers to cloud computing for efficient data storage, artificial intelligence tools to make better decisions and robotics for automating processes. Implementing these new technologies is the biggest global corporate priority for 2022, according to strategic consultancy the Hackett Group.

3. From ‘just-in-time’ to ‘just-in-case’

One of the great supply chain advancements in recent decades is a Japanese management philosophy known as “just-in-time.”

While the essence of the philosophy is eliminating waste, businesses reduced just-in-time to the idea of having low or even zero inventory. That meant carrying as little stuff in warehouses as possible to minimize storage costs, maximize efficiencies and yield higher profits. As long as there were no disruptions, the system worked.

However, just-in-time made businesses vulnerable to even small disruptions. Companies’ super-lean supply chains meant the disruptions caused by the pandemic – and pretty much anything else – were amplified considerably, making even a hiccup potentially cascade into a major problem.

Companies now fearful of shortages are moving toward carrying more inventory. Since the pandemic began, many have been shifting from just-in-time to a “just in case” model. While having more inventory will make it less likely companies will experience shortages, it’s also more costly because it can lead to a lot of excess stock and products becoming obsolete before they’re sold.

But this trend, like the others, is unlikely to change anytime soon despite the elevated costs they’ll incur. That is, companies learned that the cost of empty shelves was higher than the cost of some inefficiency. In most cases, these costs will be passed on to consumers in terms of higher prices – which may be bad news for consumers tired of inflation.

This article is part of Global Economy 2023, our series about the challenges facing the world in the year ahead. You might also like our Global Economy Newsletter, which you can subscribe to here.

Nada R. Sanders, Distinguished Professor of Supply Chain Management, Northeastern University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

At the end of every year, I gather statistics on the most viewed Wikipedia articles of the year. This helps me, a computational social scientist, understand what topics captured the most attention and gives me a chance to reflect on the major public events of the year. I try to use data to determine how the public (and more specifically here, English-language Wikipedia readers) will collectively remember the past year.

In 2020, the COVID-19 pandemic, US presidential election, and Kobe Bryant’s death were among the most memorable events. According to Wikipedia readers, 2021 will be remembered for Netflix’s Squid Game, the men’s European Football Championship and the death of Prince Philip.

But in 2022, the list is topped by a somewhat unexpected name – Cleopatra.

Most articles at the top of the list are related to major world events, including the Russian invasion of Ukraine, the death of the Queen and the men’s football World Cup. Elon Musk and Johnny Depp also made the list. In addition to perennial favourites such as the Bible and YouTube, there are a couple of surprises that were probably influenced by external factors like media and popular culture.

For example, the article about Jeffrey Dahmer, the notorious US serial killer who died in 1994, had more than 54 million views, coming in at number two. While aggregate page view statistics alone may not provide a complete understanding of why Wikipedia users were interested in certain topics, changes in view statistics over time can provide clues.

In the case of Dahmer, an increase in page traffic corresponds with the release of the Netflix series Monster: The Jeffrey Dahmer Story on September 21. This suggests that the series may have prompted readers to learn more about Dahmer from Wikipedia.

However, the massive interest in the article about Cleopatra remains a mystery. While there were some news stories about a remake of the classic movie and a Superbowl commercial featuring Cleopatra, these do not fully explain the significant number of views. The day-to-day viewership statistics of the Cleopatra article also do not point to any specific event as the cause.

It also doesn’t show the typical rapid decay pattern of public attention. My colleagues and I have found in our past work that online attention usually has a short half-life of five to eight days, similar to what we see in the case of the Dahmer page.

Hey Google, tell me about Cleopatra

Trying to find the reason for the sudden spike in views of the Cleopatra article, I turned to the internet for answers. Soon, someone on Twitter provided a clue: the Google Assistant app, which uses voice recognition to allow users to interact with their phones through conversation, may be responsible.

Launched in 2016, the app is now built into at least 1 billion devices and has more than 500 million monthly users. When you install the app and start using it, it provides examples of the types of requests you can make.

These include commands for your phone’s operating system, such as “Open YouTube,” or requests to initiate a web search, such as “How many ounces in a cup?” The app can also perform a combination of actions, such as “Show Cristiano Ronaldo on Instagram,” which would open the Instagram app and bring up Ronaldo’s profile.

One of the prompts the app provides to demonstrate its capabilities is “Try saying: Show Cleopatra on Wikipedia”. Sure enough, in 2022, approximately more than 50 million people followed this prompt. Before Google Assistant became widespread in 2020, the annual views on Cleopatra were around 2.5 million.

Designing collective attention

The article’s popularity was probably greatly influenced by a prompt provided by the Google Assistant app, a seemingly arbitrary decision made by Google UX designers.

This is more than just an interesting coincidence. Researchers in the fields of social data science and web analytics often use statistics such as Google search volumes and Wikipedia page views to study attention and popularity dynamics. In addition to predicting the success of movies at the box office I used such data to study electoral popularity as well.

While these rather new data sources can be useful and exciting, and great proxies for monitoring human behaviour online, they can lead to misleading analysis. In 2013, Google researchers tried – and failed – to predict the severity of the flu season by analysing user search data.

It’s important for researchers in computational social science to also consider qualitative methods and in-depth case studies to understand the story behind the data.

More importantly, the Cleopatra example highlights the impact that seemingly small decisions by designers can have on directing collective attention to certain topics and issues, sometimes with more serious consequences. Google has been criticised for ranking search results in a way that prioritises its own products.

My previous research has shown how links on Wikipedia can drive significant traffic to certain articles, and how promoting certain petitions on the front page of a petitioning website can significantly alter the distribution of signatures and therefore chances of receiving widespread attention for certain political causes.

This phenomenon shows how a small change or design decision can have large-scale effects when it reaches millions of users through digital technology. In this case, no harm was done and maybe we learned a bit more about Cleopatra and her relationship with Julius Caesar. But the significant power that high-tech and media companies have in shaping and influencing public attention should not be overlooked.

Taha Yasseri, Associate Professor, School of Sociology; Geary Fellow, Geary Institute for Public Policy, University College Dublin

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Go the Traditional Route of Student Loans

Many students take out loans to cover the portion of their expenses that scholarships or their savings won’t cover. Help them research providers, and consider cosigning on their loan with them. This makes it more likely they will get approved, and it could even result in lower rates. Your help can help your child save money over the loan’s life.

Help Your Student Find Scholarships

Grants and scholarships can help you cover the costs of school, although it can be hard to get into them, and you may struggle to find them. Start by checking with your child’s university of choice to see what they offer that you can apply for. There might be some they are eligible for, such as privately funded ones. Next, use online scholarship tools to find grants or scholarships your child could qualify for. Start early and keep track of all deadlines. Read the fine print and requirements to qualify so you don’t get any surprises. This also ensures your child has their application reviewed and considered on time. Applying can also help your child build writing skills as some applications will require an essay.

Consider Alternative College Types

If a traditional school is not on the horizon, look into junior colleges and technical schools. There are plenty of technical schools and vocational schools that can help your child prepare for a career. Your child could even earn some credit that can then be transferred to a traditional school. They can take their general education requirements at a community college and then transfer them. Just make sure their school of choice accepts credits from the community college. In some cases, students might find they don’t need more than an associate’s degree to get into their career field of choice. You might find in some cases that two-year schools are more affordable, and they still allow your student to further their education.

Look to Other Sources of Funding

You could get other funding from your home by taking out a home equity loan. Ask your mortgage lender or bank if this is a good choice for you. Even if it won’t fully cover the cost of tuition, it can pay for some college expenses, and your child could cover the rest through scholarships or a job. You can also take advantage of retirement accounts, like your mutual funds or IRA accounts. Still, this is generally seen as a last resort because your child can always get funding for school, but you cannot borrow for your retirement expenses, and there could be early withdrawal fees.

The coronavirus pandemic was a global event with global consequences. Around the world, nations united in their response to a once-in-a-lifetime biosecurity threat. Two years on, coronavirus remains a constant presence, but one well-mitigated by legislation and public information.

Still, its impacts have been felt holistically, on personal and professional levels. The job market in particular has seen great upheaval as a result of the pandemic – but in what ways?

Unemployment Spike

One of the uniting factors across nations impacted by the coronavirus pandemic relates to employment. Even with wage subsidy and quarantine payments, various nations saw their unemployment figures spike as businesses found the retention of staff untenable. Not only did restrictions on gathering impact business takings profoundly, but the costs of keeping staff became difficult to shoulder.

In Australia, this spike in unemployment impacted younger people most heavily. According to the Australia Institute, young people constitute 14% of Australia’s workforce – yet represented 55% of all job losses in 2021. There are many reasons for which this may have been the case, including the disproportionate impact of coronavirus on the hospitality industry. 

But since 2021, employment numbers have recovered significantly. While the job market is looking healthier today, the impact of the virus and the unemployment spike is still felt keenly – having changed the shape of the industry for decades to come.

Remote and Hybrid Working

One of the key ways in which this change has been realised is in a shift towards remote working. With employees unable to attend the office, organisations were forced to invest more heavily in remote working equipment and softer – in so doing, demonstrating the ease with which flexible working patterns could be adopted.

A return to the office has been possible for workers for some time now, but remote- and hybrid-working arrangements have proven popular. Of Australian employees working from home, nearly 70% were found to be interested in continuing to work from home.

The Great Resignation

The pandemic also caused many workers to re-evaluate their career path, inspiring something called the ‘Great Resignation’ in the US and the UK. The Great Resignation has also begun to take place in Australia, deferred somewhat owing to the more stringent coronavirus legislation here.

The Great Resignation describes the increase in workers leaving their positions, either in search of better working conditions or a future in a new industry. It has also given rise to an increase in self-employed workers, taking advantage of remote opportunities to travel or re-locate. Some entrepreneurs are taking the opportunity to create their own income stream through forex trading, or through creating their own remote business.

Wellbeing and Priority

A common thread underpins the above shifts in worker attitude, going some way to describing the contemporary jobs market and the future of employment – both in Australia, and globally. The pandemic pulled into sharp focus the way in which workers prioritised their time and energy, revealing to many that their physical and mental health was suffering for the sake of their work.

Indeed, after the pandemic there has been an acutely increased awareness of mental health – and the multifarious impacts of the conventional work-life relationship. Workers are now shifting to prioritising their own mental health, whether through seeking less stressful career paths or businesses with progressive policies regarding workload and wellbeing. As workers understand their worth in the market all the more, businesses are required to step up their approaches to mental health to attract talent.

Who Benefits from Legalized Gambling?

Before focusing on specific nations, we must start by answering the question of who benefits the most. While the headache of setting up laws and regulating the sector lies with the government, all residents within the jurisdiction are primary beneficiaries, both men and women.

From residents to partner industries, the education system, and state governments (in the case of the USA), there are more benefits than usual, especially as online casinos are now becoming regular with land-based venues.

A Thriving Gambling Income in the USA

In the USA, online casinos are developing rapidly. With the upturn of the PASPA law in 2018 by the Supreme Court, states now have individual powers to legalize online gaming and make laws as they see fit. This has increased the nation’s capacity and even boosted the economy since traditional casinos have an additional partner that assists them in making gaming appealing to everyone.

Gamblers spend more than $2 billion at restaurants close by, and an estimated $1.7 billion at retail stores. The gaming sector is responsible for over 2 million jobs when considering job creation.

This is also felt in education, where state lottery boards are detailing their profits to the public education system. Over $27 billion were made from this method in 2018, a necessary amount pumped into state-owned schools to improve the quality of education.

The Economic Impact of Gambling in Canada

The Canadian economy has also felt the impact of internet casinos. Over 260,000 residents currently work in the sector, directly and indirectly. Hence, it is impossible to rule out the serious effect of gaming, especially in Canada. It’s now unsurprising that Canada is listed among countries where online gambling is legal with space for future improvements. The financial gains are terrific.

A total of $17 billion or more was raised as revenue in 2017. A huge figure accountable for direct gaming and paying for services related to casinos.

Australia’s Gambling Economy

In Australia, the story is almost the same. Jurisdictions like Melbourne, Brisbane, Sydney, and Perth have famous attractions in gaming venues. It is not surprising that Australia has some of the best slot machines, contributing heavily to the excess of $25 billion raised as revenue. The government also gets almost $5.5 billion in taxes revenues annually.

Initially, gaming was restricted to land-based retail centers, and several had rules dictating who could access their amenities. In addition, the payout was low due to the outstanding costs of maintaining the land-based casinos. Hence, players had to wager for long hours and get little pay. Also, one could never guess the size of the payout. With internet gambling, the story is different. The players now have a chance to consult the reviews, and find the highest payout online casino where they can enjoy exciting and secure gameplay. The chances of winning more have also increased.

The sector is so vital that the nation also boasts of a casino software developing company, Aristocrat Gaming. This provider is responsible for developing software for online casino sites.

The Economics of Gambling in Spain

Spain is another jurisdiction with a huge gaming sector. According to statistics, over 200,000 jobs have been created. While 45% is remitted in gaming taxes, operators make over ₤5 billion yearly.

Gambling online has become attractive in Spain. The nation has turned into a haven for many online sportsbooks, internet poker rooms, and casinos. A familiar figure is seen as Spain posted ₤747 million in revenue for the 2017 fiscal year. It is expected that this will grow in the years to come.

The Economic Impact of Gambling in Ireland

Casino gambling has made a visible impact on Ireland. In 2018 alone, the authorities issued 32 licenses to deserving operators. Although these casino sites are under heavy regulation, getting licensed has become easier. It has created several jobs, which has further boosted the economy.

For most platforms, confirming which site can pay out instant winnings for gamblers is now possible. Initially, players were restricted to waiting for long before getting cash wins. Ireland gamblers can comfortably find the reviews and choose an instant payout casino, and also read about different promotions like bonuses and games to wager. This has further improved the industry in the nation.

Currently, the gaming sector is worth about ₤1.1 billion, with contributions from almost all stakeholders. Slot machines are a significant attraction, and the nation is projected to have higher amounts due to the further influence of the gaming sector.

The Economic Impact of Licensed Online Gambling

Licensed iGaming sites have never been more instrumental to the growth of any jurisdiction than now. It has become a win-win situation for everyone, which is why the process of getting a license has become easier. This includes the players, operators, and the government. Gamblers now have the choice to play at reliable casino sites. A licensed iGaming site means they can gamble without fear of losing their funds.

Operators can easily manage sites without fearing attracting disturbing lawsuits or being made to pay heavy fines. They can also tap the huge population and offer targeted ads to entice new customers. The sector generates billions of dollars in revenue for governments around the world. Generally, the licensed iGaming sector provides immense benefits to everyone economically.

Summary

Undoubtedly, there is a complete shift in the internet gaming industry globally. The economic relevance has shown that online casinos have come to stay. We believe that other governments can learn from these jurisdictions, and move to legalize the sector. This should be followed by intense regulations and policies, too.

Disclaimer:

• As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman and Sikkim, prohibit gambling
• Land-based casinos are legalized, with certain guidelines, in Goa and Daman, as per the Goa, Daman and Diu Public Gambling Act 1976  
• Land-based casinos, Online gambling and E-gaming (games of chance) are legalized in Sikkim under the Sikkim Online Gaming (Regulation) Rules 2009
• Only some Indian states have legalized online/regular lotteries as per and subject to the conditions laid down by state laws. Kindly refer to the same here
• Horse racing and betting on horse racing, including online betting, is permitted only in a licensed premise in select states. Kindly refer to the 1996 Judgement by the Supreme Court Of India here and for more information
• This article does not endorse or express the views of Qrius and/or any of its staff.

Impact Case — Research Excellence Framework (REF)

Many UK cities – including London – are trapped in models of economic development that prioritise economic growth over broader social and economic well-being. Rising property values coupled with regeneration projects that emphasise high-value, high-rent retail floorspace have led to thousands of people being squeezed out of affordable living and working spaces each year.

High streets in marginalised peripheries of UK cities are often shaped by long-standing processes of migration. The cultural and economic significance of street life in these diverse, de-industrialised peripheries, and the multi-layered role of independent shops and social spaces, are often overlooked in planning and policy terms.

What did we do?

I led as well as participated in a collaborative body of work providing a detailed and comparative account of high street economies in UK cities. Entitled “Migrant Margins”, this work introduces grounded perspectives on high streets shaped by global migration and urban marginalisation. It draws on face-to-face surveys with more than 500 shop proprietors in Birmingham, Bristol, Leicester, London, and Manchester, as well as conversations with local authorities, and engagements with activist groups. The research comprises four distinct but connected projects that ran between 2012 and 2018, forming a body of accessible research relevant to planning policy, activism, and teaching and learning beyond the university context.

In “Ordinary Streets”, my colleagues and I researched the street-level economy of Rye Lane in South London through detailed face-to-face surveys. It highlighted the crucial role of high streets in the context of economic precarity; identified how new tenure arrangements and spatial subdivisions are created in response to rising property values; and explored the role of trade and civic associations in negotiating change.

The next project, “Super-diverse Streets”, explored the street economies of independent shop proprietors across de-industrial peripheries in Birmingham, Bristol, Leicester, and Manchester. This produced additional insights into how histories of migration shape street livelihoods, identifying forms of socio-economic participation that challenge more narrow integrationist policy debates. It captured the multi-lingual proficiencies, occupational skills, and educational levels of shop proprietors and trans-national circuits of trade.

In its second phase, run in collaboration with the social enterprise Social Life, “Super-diverse Streets” analysed the support needs of trade associations in Birmingham and Leicester. It showed how different organisational models deployed by traders affected communication with local authorities and suggested effective ways to broker new forms of partnership, avoiding a “one-size-fits-all” approach.

“High Streets for All” (2017) was commissioned by the GLA and carried out in collaboration with architectural firm We Made That along with the Just Space network, and combined visual mapping with the varied user experiences. The public report clarified the social values and diverse economic practices in streets in London undergoing pronounced change.

The fourth project, “Socio-economic Value at the Elephant and Castle”, focused on regeneration plans in Elephant and Castle in South London, and its central shopping centre. Working with Julia King as lead LSE researcher and in a collaboration with the charity Latin Elephant, the research highlighted the importance of the micro-economies and ethnic minority trade that once existed at the now demolished shopping centre. The research supported Latin Elephant’s advocacy for the protection of the 130 independent, largely Black and ethnic minority traders operating within the original shopping centre.

Together, the collaborative research of the “Migrant Margins” project has generated understanding and evidence of the socio-economic value of urban high streets, and the role of migration in shaping and sustaining street economies in de-industrialised UK cities.

What happened?

This research challenges official discourses on urban margins and migration by providing detailed and comparative accounts of street livelihoods in relation to social change. Through the varied reports, films, and audio outputs, it has engaged a wide non-academic audience with these important issues, and is underpinned by collaborations and engagements with charities, public-funded networks, and community groups.

In London, the research challenges conventional perspectives on urban regeneration that prioritises high-value large-scale schemes and has provided planning authorities with an alternative framework for understanding the socio-economic worth of micro-scale independent retail and the class and cultural intermixtures this supports. This has been acknowledged by the Greater London Authority (GLA), which commissioned the “High Streets for All” report. In 2020, I was invited to sit on the Mission Sounding Board for London’s High Streets, one of nine recovery missions approved by the GLA and London Councils to help build the city’s economy and society in the wake of COVID-19.

My colleagues and I have collaborated with advocacy organisations to provide evidence and resources for local campaigners responding to displacement pressures. This includes Just Space’s “London for All” handbook, which drew on the research from Ordinary Streets to provide advice for community and small business groups fighting threats posed to affordable workspaces. The “Super-diverse Streets” project with Social Life resulted in an open-access report, which provides evidence-based recommendations for local councils to better recognise and support street-based networks and initiatives. As co-authors, Latin Elephant were able to incorporate the joint research on the role of ethnic minority traders in the existing shopping centre to argue for more affordable work and trading spaces in the new development, and for a longer period of protection.

Narrating complex migration processes through the lens of the high street also helps to raise questions of borders in the context of a hostile immigration environment. Our LSE team has worked with educational platforms to incorporate our research into resources examining how migration shapes the everyday life of UK cities. In 2017, the “Ordinary Streets” and “Super-diverse Streets” research was included in the Royal Geographical Society’s new educational podcast series. The resulting episode, “Diverse Places and the High Street“, aimed at key stages 3, 4, and 5 teachers and students, was accompanied by an online lesson plan and teaching resources for A-Level students.

The research also featured in a series of short films, “Six Impossible Ideas after Brexit”, curated by Migration Matters, a non-profit organisation founded in 2016 in response to media coverage of the “refugee crisis”. Its aim is to provide a public platform for more evidence-based conversations about migration. I contributed to three short educational videos, all of which are used by the EU’s Erasmus+ in its virtual exchange programme.

Our research has generated detailed evidence of the socio-economic value of urban high streets and the role of migration in shaping and sustaining the economic and cultural life of streets. Engaging with planners, policymakers, community and activist groups, as well as educational institutions and platforms, it has made a distinctive contribution to debates about policy and planning in UK cities. Further, the narration of complex migration processes through the lens of the high street challenges narrow discourses around the so-called “migration crisis” in the context of a hostile immigration environment.

This collaborative research has been funded by LSE Cities, the Economic and Social Research Council (ESRC), the Greater London Authority (GLA) and the Leverhulme Trust.

Suzanne Hall

Suzanne Hall is Associate Professor in Sociology and Deputy Head of the Department of Sociology at LSE. She is an interdisciplinary urban scholar, and her work connects the asymmetries of global migration and urban marginalisation. 

This article was first published in LSE Business Review