The U.S. energy industry is in the midst of unprecedented change—and it’s a change that will have a major impact on the way utilities and energy companies do business. Southwire has identified five megatrends driving this change, and these include:
- The Changing global marketplace
- Dwindling natural resources
- The shift toward renewable energy
- An aging power grid
- Restructuring of the U.S. Economy
In the first of this five-post series, we focus on the changing global marketplace and what this means for energy companies and utilities here in the U.S.
Megatrend 1: The Shifting Seat of Power
The global marketplace is changing. In 1960, seven of the world’s top 20 cities by population were in the U.S. and Europe. The seat of global power was clear and concentrated in these regions, a trend that continued into the 21st century.
Today that’s no longer the case, with much of the world’s growth occurring in developing regions such as Southeast Asia, specifically in countries like China and India. In fact, by 2015, only New York and Los Angeles will remain in the top 20 cities – and not a single European city will make the list.
Since power demand follows growth and urbanization, the implications of this shift are far-reaching. Emerging economies will exert more influence on the global supply chain, shifting the seat of power away from the U.S. and Europe.
To stay competitive, energy providers must not only recognize this changing global marketplace, but also think about strategies to transform and diversify their businesses to adapt not just with the market, but ahead of it. U.S. power companies will need to find creative ways to provide power to domestic customers, while contending with rising supplier-controlled costs and limited human and monetary capital. The opportunities to succeed are there – the trick is knowing where to look.
And that’s where Southwire can help. Talk to us today to find out more about how this trend will impact your business and how we can help you make the most of a changing industry.
Also, stay tuned for our discussion of Megatrend #2: the threat of dwindling natural resources, and how to adapt your business model to stay ahead of the curve.