Now that is a striking shift ...
DC power needs ...
I think its going to be increasingly common to see analysis of this type over the next few years - power is going to be in increasingly short supply ... and people who need it (tech, reshoring manufacturers) are going to have to compete for sites that have it very very aggressively ... and that's a global thing ... not just a US trend ...
BTW - these numbers sound oddly big ... 405 TWh ... is a huge amount ... 250 TWH incremental can't be far off total power consumption in California ... finding that in 6 years ... wow...
Somebody recently asked me ...
why inflation running at a higher rate that 2% was a problem ... my response was that at higher rates of inflation, it becomes harder to predict nominal earnings/margins because input prices of certain goods and commodities become unusually volatile ... they asked for an example ... and I struggled to find one ... this slide answered the f/up request!
Geo-Strategic reshoring ...
Alot of reshoring of productive capacity coming to US & Europe - driving new needs for supply chain management, power needs and other supporting infra ... a mega trend to watch for the next decade ...
A few years ago …
I remember chatting to a client about WFH and saying that there was going to be a split in the labour force - that would lead to 2 types of job - jobs where your boss wanted back in the office - and jobs where your boss was happy to let you stay at home … and that this ‘choice’ might be defining because ultimately … if the boss is happy to have you stay at home it might be because they think your job may well be automated in 5 years time …
Useful FT article on RTO …
Energy is a theme, defence is a theme, reshoring is a theme, secure technology is a theme … welcome to a new reglobalised world ….
Echo of prior periods?
We might normalise ... but real question is how do you hedge your portfolio for what might come next? There are a number of paths ... but flat lining at 2% feels less likely now given what's going on in the world... that means inflation hedging is still going to be an important part of asset allocation...
Nice chart ...
How currency effects inflation outcomes ...
US RTO rates ...
