From Shock to Strategy 2025

value chain facilities and assets may remain highly vulnerable to climate-related damage, further intensifying supply network strain.5 Meanwhile, supply chains themselves will probably continue to contribute to climate change through high emissions from manufacturing and extensive logistics operations. To address this, it is plausible that an increasing number of differing sustainability regulations will be implemented, requiring manufacturers to take stronger measures to reduce their impact on the planet. Technology evolution The uncertainties of technology evolution will significantly shape future value chains by creating challenges and opportunities in several dimensions. The speed at which technologies diffuse across industries will determine how quickly value chains can adapt to new innovations, with early adopters potentially gaining a competitive advantage. Additionally, the geographical fragmentation of technology, where some regions have access to advanced systems while others lag behind, will lead to uneven development and integration of global value chains as well as a fragmented landscape of regulations. Moreover, the gap in education and skills will persist as the speed of technological advances outpaces the speed of workforce skilling, causing further problems for workforces already in need of skilling and reskilling. Cybersecurity As digital ecosystems grow more complex, cybersecurity will become an increasingly critical concern. Yet many organizations may struggle with limited visibility and awareness of emerging threats, leaving them vulnerable to cyberattacks. This issue could be particularly evident in supply chains, where cybersecurity risks can lead to major disruptions, affecting global operations and logistics. The growing complexity of digitalization is exacerbating cyber inequity, widening the gap between large and small organizations, deepening the divide between developed and emerging economies and expanding sectoral disparities.7 Additionally, the shortage of skilled cybersecurity professionals will exacerbate these challenges,8 making it difficult for businesses to implement robust defences against evolving cyberthreats. Workforce and skills As industries continue to adopt new technologies and shift towards more sustainable and digital practices, workers must continuously learn and adapt to stay competitive.9 This fast-paced transformation calls for a workforce that is not only technically proficient but also capable of adjusting to new environments and challenges, making flexibility and adaptability crucial qualities for success in the modern labour market. Additionally, geographical disparities in workforce flexibility create significant uncertainty for businesses, as the required personnel capacity and skills may not be present in key regions, leading to challenges in recruitment, increased labour costs and delays in scaling operations or implementing new technologies. Social equity The pursuit of social equity has emerged as a nexus of technological transformation and regulatory evolution. As nearly 2.6 billion people remain underconnected to digital infrastructure,10 the digital divide is more than a technological gap – it represents profound inequalities that challenge economic and social ideals. Increasingly, pressures with regard to social equity are compelling organizations to reimagine their approach to workforce development, technological integration and inclusive growth. The growing uncertainties around technological access, labour-market dynamics and broader systematic barriers require multistakeholder accountability and collaboration strategies to ensure that conversations about social equity move from peripheral thought to core strategic priorities.5 67 8 From Shock to Strategy: Building Value Chains for the Next 30 Years 6