Monday, October 5, 2009

Where There's a Will, There's a Way: Fighting An Uphill Battle in a Flat World

Parents like to joke about how much harder things were back when they had to walk uphill both ways to school.  That feeling of facing an uphill battle in every direction is unfortunately all too common for today's job seekers.  High and still rising unemployment rates are motivating workers to seek opportunities in emerging green industries that represent the future more than the past.  However, firms pursuing these growth opportunities are reluctant to hire workers with skills and experience acquired in other industries.
  
Bridging this gap between workforce skill supply and demand must be part of the strategy for competing in a flat world where products and services move across national borders. At the risk of over generalization, the overall strategy for nations (as well as states and companies for that matter) can be summed up as follows:
  1. wit:  witty countries have innovative research, development, manufacturing, training, and business models.  These tend to start off strong once they get started and then lose their lead to the second group. 
  2. wages:  countries with large skilled workforces earning relatively low wages tend to overtake the first group by offering lower costs of production.  
  3. will:  willful countries with the ambition and action plans tend to find success while the first group is still discussing its options and the second group is waiting for a mass market to develop.
To give this analysis legs, I'll name names.  The United States, Britain, France, Germany, Spain (and other Western European countries), Canada, and Japan tend to represent the first group.  China, India, Korea, Mexico, Russia and other Eastern European countries tend to represent the second group.  Membership in the third group varies depending on the industry and the particular political will and insight present at a given time.  For example, Germany in the solar energy industry is a shining example of a country that demonstrated its will to lead through very generous subsidies for installing solar systems despite its limited sunshine.  After years of success, Germany is having to deal with competing countries with lower costs (China) and more sunshine (parts of the United States and Africa).

France in the electric vehicle industry has stated its will to promote its workforce and auto makers as leaders in this emerging space by articulating an ambitious, comprehensive plan involving both sticks (carbon taxes) and carrots (subsidies for makers and buyers) to make it happen.

Does your country's leadership have the wit, wages and/or will to emerge from the global recession with its economy and workforce intact?

Thoughts?

No comments:

Post a Comment