What’s going on?

Companies are spending 15% more in 2021 than they have done before the pandemic to equip themselves for the post-pandemic future.

What does this mean?

Supply delays, chip shortages, and the green revolution are forcing companies to invest in their production capabilities and in-house technology. This is also accompanied by increasing consumer spending, super-cheap borrowing, a genuine economic recovery.

Why should I care?

The bigger picture: That might be a sign of relief

• Looking back to 2008 financial crisis, companies’ unwillingness to spend money made employment numbers and wages stagnate.
• Therefore, a business spending surge could offer a ray of hope that supply chain issues, inflation fears, and the withdrawal of economic support wouldn’t be as serious in 2022 as some are expecting.

Zooming out: Metals wear the crown

Metals, specifically aluminum, hit a 13-year high after rising 15% over the last 3 weeks. That makes sense when

• Firms are looking to boost production
• With China’s continuing production limit as part of its measures to reduce CO2, a supply gap could take up to 5 years to fill.

Content source: Finimize (2021) Dystopen For Business. Available at: https://www.finimize.com/wp/news/dystopen-for-business/ [Accessed on Sep 14, 2021]