In this Supply Chain Byte, Lisa Anderson, President of LMA Consulting Group, highlights why energy is at the core of everything in supply chain and manufacturing. From powering automation and AI to driving production and logistics, energy access and strategy are critical to growth. As demand soars, companies must rethink how they plan, invest and prepare for the energy needs of tomorrow.
Unleashing energy must become a priority to prepare for future success. For example, the computational power for AI growth doubles every 100 days. That is a staggering statistic, yet critical for economic growth and success. China is building from 3 terawatts to 9 terawatts while the U.S. has been thinking about going from 1 to 2 terawatts – simply nowhere near enough! Thus, we need to increase all forms of energy from coal, natural gas, solar, wind, nuclear, etc. Small improvements will not cut it! We must unleash the power of energy to fuel manufacturing, artificial intelligence, electrification and the future.
For example, if we increase domestic production to better ensure supply of critical items such as pharmaceuticals, defense, and critical infrastructure, we must reshore production, transition to regional supply chains, and secure supply of rare earths. To read more about the importance of natural resources in supply chains, read our article, “Geopolitics and Natural Resources Will Dictate the Future of Supply Chains“.
Energy will drive the future. Are you prepared for success?
If you are interested in reading more on this topic:
Geopolitics, Natural Resources, & Impacts to the Supply Chain