Forecasts for 2025 and beyond

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2025 and Sustainability Cybersecurity Economy

The business world is at a turning point where technological advances and new risks are setting the agenda in equal measure.I look forward to 2025 and the coming years with a mixture of anticipation and realistic assessment of the challenges. Four trends will have a lasting impact on the business world:

New political and economic realities

Changes due to new governments and trade relations

The geopolitical situation has a direct impact on the flow of goods. With a new US administration and increased tariffs, exports to the USA are becoming less attractive for many European companies. At the same time, Europe is planning to take countermeasures, which will put additional pressure on trade between the two continents. New sources of supply, particularly from Asia and Africa, are coming into focus.

Morocco is an example of these new “newcomer markets”. There are enormous opportunities for investors here: lower costs, a young and dynamic population and a strategically advantageous location make this region attractive. For the European economy, however, this means that parts of production could migrate. Companies must therefore remain flexible and adapt to alternative supply chains and new investment strategies.

Demographic change in Europe

The ageing population in Europe will become even more noticeable in 2025. In Germany, for example, the baby boomers are retiring – a process that will have a massive impact on the labor market and society. The shortage of skilled workers will continue to worsen, while the cost of social benefits will rise and the younger generation will have to shoulder this burden.

Family-run companies, which make up 70% of German SMEs, are particularly affected. In around 3.1 million SMEs, one in three owners is aged 60 or over, with the majority of these being family-run. An estimate by the Institute for SME Research concludes that around 190,000 companies are due to be handed over between 2022 and 2026. Many of them are unable to find a successor, which could lead to a noticeable decline in product and service diversity. New solutions are needed here, such as innovative succession models or the integration of skilled workers from abroad.

Skills shortage and changing values

The new generation of employees has different priorities: while the baby boomers shaped the economy with their “create, create, build houses” mentality, today’s generation values mental health and work-life balance. Companies need to rethink their approach in order to attract and retain this generation in the long term. Flexible working models, a sense of purpose at work and an open corporate culture will be crucial.

Sustainability

The cost trend in the fossil fuel sector will reach a critical turning point in 2025. With the expiry of Russia’s gas supply contracts with countries such as Hungary and Moldova, Europe is facing an energy crisis. While some countries have switched to alternative energy sources in good time, others will be hit hard by the drastic price increases. Fossil energy sources are becoming even more expensive, significantly increasing the pressure to switch to sustainable energy.

Companies that have already switched to renewable energies will have a clear competitive advantage here. However, this transformation requires investment, which could place a burden on smaller and medium-sized companies in particular. The challenge lies in helping these companies to manage the transition through state subsidies or innovative financing models. Sustainability is no longer an optional goal, but is becoming an economic necessity.

AI as a standard tool

Artificial intelligence is rapidly evolving from an innovation feature to an indispensable standard tool. Companies are using AI across the board – from data analysis and decision-making to process optimization. The added value lies not only in increased efficiency, but also in the ability to make well-founded and forward-looking decisions. Anyone who hesitates here risks losing touch with competitive markets.

Cybersecurity is moving into focus - also in the supply chain

With increasing digitalization, the threat of cyberattacks is also growing exponentially. Companies are under pressure to implement comprehensive security strategies to protect data, systems and business processes. For for business leaders this means that protecting the digital infrastructure must be an integral part of any transformation strategy.

How can we not only survive change, but actively use it to shape the future?

There is a new challenge in security, especially in the supply chains. The growing transparency in the supply chain is undoubtedly a competitive advantage, but it brings with it new dependencies – particularly in the area of cybersecurity.

Transparency means that data is made available along the entire value chain, which expands potential attack surfaces. Companies investing in transparent supply chains must inextricably combine this with robust security solutions to ensure the integrity of their processes.

Conclusion: Actively shaping the future

The forecasts for 2025 and beyond show a business world characterized by profound changes. Whether geopolitical uncertainties, demographic developments, changing work values, the need for a sustainable energy supply, the use of artificial intelligence or the growing demands on cybersecurity – all of these trends are more than challenges; they are opportunities to actively shape the future.

Companies that act with courage and foresight will benefit from the changes and set new standards. It will be important to remain flexible, enter into strategic partnerships and develop innovative solutions in order to meet the diverse requirements. The coming years offer the opportunity not only to react to change, but to actively shape it – and thus lay the foundations for a successful, sustainable and resilient future.

Conclusions

  • New markets and geopolitical changes: Geopolitical developments and trade shifts are boosting the importance of new markets such as Morocco and require flexible supply chains.

  • Shortage of skilled workers due to demographic change: The retirement of baby boomers is exacerbating the labor shortage, especially in family-run companies.

  • Sustainability as a duty: Rising energy prices make the switch to renewable energies unavoidable, which requires government support.

  • AI as standard: Artificial intelligence is becoming indispensable for efficiency and competitiveness.

  • Cybersecurity in supply chains: Growing transparency increases the risk of attack, which is why security strategies are essential.

If you have any suggestions or thoughts on this topic, please write to me.

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