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As market conditions remain dynamic in the COVID-19 era, it seems essential that companies adapt to current trends and maintain their precise modus operandi. In 2021, a major digital shift was seen among businesses around the world as even smaller entities jumped on the digitalization trend and managed their operations remotely. In a way, 2021 has been a time of education, with companies slowly recovering from the aftermath of the lockdown.
While the economy still needs recalibration to reach pre-pandemic production levels, the pandemic has left many interesting developments. Here’s a look at some of the upcoming trends that may turn out to be big changes for the Australian economy in 2022.
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A move away from globalization
The restrictions induced by the pandemic have forced companies to constantly improvise and move forward despite supply chain disruptions. With international trade interrupted or at least restricted, many companies had to source materials domestically.
In addition, growing trade tensions continued to raise inflationary concerns, prompting countries to develop a greater degree of self-sufficiency. The trade war between the United States and China was enough to prove how tensions between two superpowers can affect business on a global scale. Thus, a growing wave of self-reliance could be observed among the great nations in the coming year.
A more pronounced digital wave
Digitization is the most visible by-product of the pandemic. The major sweep of digitization has come in handy for customers and sellers during the pandemic. The year 2020 and 2021 has seen companies increase their brick and mortar business setup by opening up online services.
However, many small businesses in Australia have yet to go digital. Not only would this move allow them to join the current trend, but it should also increase their sales and improve their reach in the market. The government can also help in this area by promoting a transition to digitization at the grassroots level.
Adoption of environmentally friendly methods
The year 2021 was marked by global recognition of the issue of climate change and the commitment of countries to unite for the cause. One of those steps in the right direction has been decarbonization, through which companies joined forces to reduce carbon emissions to the environment. As the lithium-ion battery supply market strengthens, one can expect a dramatic change in the coming year in the form of mass adoption of electric vehicles.
The responsibility for advancing this vision of a carbon-free economy now lies with both the Australian government and businesses. This can be made possible by switching to cleaner forms of energy production. However, alternative sources of energy and production are relatively more expensive, which makes switching more difficult for some companies.
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Improved technological skills
For a smoother functioning of a digital economy, technological skills are a fundamental prerequisite. Technological literacy should be encouraged from primary school to university level. While there is a certain inherent inertia before a technological change occurs, the process usually becomes much smoother once individuals become familiar with the concept.
Australia needs a larger, technologically friendly population level that can quickly adapt to changing market trends. This requires an improvement in national skills, which can help strengthen Australia’s self-reliance.
In short, the economy is slowly improving and is on the brink of some interesting developments. The pandemic has sparked a paradigm shift in business operations, helping them stay afloat despite challenges. So, if the government brings some of these changes and trends to the fore and businesses remain flexible, 2022 can also prove to be a successful year for the country.
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