Yves BonteCEO DOMO Chemicals
Moving forward: Five key trends we will be keeping an eye on in 2023
So, what can we expect to see in 2023? Although uncertainty is everywhere, we continually assess and monitor megatrends as best we can. This is vital to informing our decision-making as we set a direction for onward travel.
There are currently five key trends that we think will be instrumental in DOMO’s near future.
Trend 1: Energy price volatility in the EU
This has been punishing and has hurt European companies’ global competitiveness.
As a result, we have undertaken a huge exercise to scrutinize our business, learn where we can be more effective, and take swift action to do so. A key part of this has been the deepening of our company-wide understanding of energy as a strategic component of our business direction, rather than treating it simply as a cost element.
As I said in my previous blog post, digitalizing our processes has also allowed us to put data-driven decision-making at the core of our energy-related management.
No matter how long these conditions persist, thanks to the actions we have taken, I am confident that we will emerge from this situation stronger, fitter, more efficient and wiser than before.
Trend 2: Vehicle electrification
The acceleration of electrification is extremely encouraging for DOMO, not least because it will propel the entire value chain towards a sustainable ecosystem.
Electrification, while also delivering many benefits to wider society, will serve as a catalyst for innovation as we phase out the environmentally damaging solutions of the past.
This, I feel, is another natural moment for us to assess our ways of doing business and think creatively about how we can do better.
Trend 3: Market consolidation
We also see the market consolidating in our industry. On the face of it, this means we will be up against larger and stronger competitors. But rather than view this as a negative, it will ensure we stay on our toes.
Market consolidation forces us to stay sharp, to prove that “caring is our formula,” and to make sure we never miss a beat when it comes to innovating, adapting and improving. Once again, this is a trend that will bring about a stronger, more efficient and more agile DOMO five years from now, so I welcome it.
Trend 4: Regionalization of supply chains
The move towards shorter, more localized supply chains was precipitated by the shipping challenges arising from the COVID-19 pandemic. Although the regional energy price situation has made imported supplies more economically viable once again, we believe the regionalization trend will continue as the energy market stabilizes.
In the long term, we see tremendous sustainability potential in building local-to-local supply chains and operating in closer proximity to our customers. From a societal and sustainability perspective, it is also the right thing to do.
Trend 5: Circular economy
The final trend that we are tracking as we move forward into 2023 is the circular value stream. We are already approaching this from a position of strength, as our situation in the polyamide market places us front and center of the transition to a circular economy.
DOMO has a responsibility to lead and innovate. Circularity therefore forms a key part of our ongoing strategy and our agility in this space will, I believe, come to define DOMO’s success over the coming years.
Looking ahead into 2023, this will be the year of “defining our path in the new normal.” In this “new normal” world, the context in which we operate can change from one day to the next. It is up to us to design our processes and our strategy in such a way that we can deal with the new context without deviating from our long-term vision. And I remain confident and optimistic: also in this new normal, there are opportunities before us to grow, develop and improve. I am looking forward to grasping them, with our team!
What market trends do you see evolving in 2023? Will the regionalization of supply chains and circular economy continue to progress at this accelerated rate, or will we see another unexpected