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2024 Year in Review and
As 2024 concludes, the global business landscape reflects a year of transformation influenced by major elections, technological advancements, geopolitical shifts, and sustainability imperatives. From the outcomes of over 60 national elections to the accelerating adoption of generative AI, this year has set the stage for pivotal trends in 2025.
In this article, we offer you our lessons of 2024 and the strategies we believe businesses must embrace to thrive in the year ahead.
1. Global Elections and Business Impacts:
This year’s elections were a defining moment for half of the world’s population. In the U.S., the presidential election brought a shift in trade policy, with the second Trump administration advocating tariffs on Chinese imports. This move aims to reduce dependency on China, driving demand for nearshoring and bolstering regional supply chains in Mexico and Southeast Asia. Tesla, for example, has announced significant expansions in Monterrey, Mexico, capitalizing on the country’s proximity and trade agreements.
India’s elections reinforced Prime Minister Narendra Modi’s leadership, providing stability in the world’s most populous democracy and fueling continued foreign direct investment. Indonesia’s new administration is prioritizing green energy and infrastructure, aligning with global sustainability goals. Meanwhile, the European Union’s parliamentary elections emphasized digital regulation and renewable energy initiatives, signaling evolving opportunities for companies operating across Europe. These political shifts are reshaping the global business environment, requiring organizations to stay agile and attuned to regulatory developments.
2. The Future of Nearshoring:
Geopolitical tensions and supply chain vulnerabilities have made nearshoring a cornerstone of business strategy. With the U.S. signaling stricter trade policies with China, countries like Mexico and Vietnam are becoming increasingly attractive for production and distribution.
Whirlpool is a notable example, expanding its operations in Mexico to mitigate supply chain risks and lower logistics costs. Similarly, Vietnam continues to rise as a manufacturing hub, with Apple producing key products there to diversify away from Chinese facilities. This strategic shift isn’t just about cost savings but about resilience, reliability, and proximity to key markets.
In 2025, businesses exploring nearshoring will need to assess not only operational efficiencies but also labor dynamics, infrastructure, and geopolitical stability. Regions like Latin America and Southeast Asia will offer compelling opportunities for companies aiming to build resilient and flexible supply chains.
3. Technology and AI: Transformative Forces:
2024 witnessed a surge in the adoption of generative AI, a trend that will only grow stronger in 2025. Factum Global’s Biannual Executive Sentiment Survey revealed that 78% of leaders prioritized investments in AI technologies this year. Businesses across industries are using AI to streamline processes, personalize customer experiences, and drive innovation. Coca-Cola’s partnership with OpenAI, for instance, enabled hyper-targeted marketing campaigns that boosted customer engagement and sales.
Looking forward, companies must prepare their workforce for the AI revolution. Generative AI will not replace human workers but augment their capabilities, necessitating robust professional development programs. IBM, for example, has implemented reskilling initiatives to ensure employees can effectively integrate AI into daily operations. Organizations that invest in training will secure a competitive edge in productivity and innovation.
4. Sustainability: A Non-Negotiable Priority:
Sustainability took center stage in 2024 as regulatory frameworks and consumer expectations pushed companies to act. The European Union’s Carbon Border Adjustment Mechanism (CBAM), which requires carbon taxes on imported goods, prompted companies to rethink supply chains and reduce their environmental impact.
IKEA, for example, accelerated its transition to renewable and recycled materials, piloting solar-powered manufacturing plants in India to cut emissions. Meanwhile, Patagonia’s commitment to reinvest profits into reforestation projects showcased how businesses could align profitability with environmental stewardship.
In 2025, sustainability will become even more integral, with innovations in circular economies and carbon-neutral operations leading the way. Companies that prioritize transparent ESG reporting and sustainable practices will build trust with stakeholders while staying ahead of regulatory pressures.
5. Resilience in the Face of Uncertainty:
2024 was marked by ongoing conflicts, including Russia’s attack on Ukraine and escalating tensions in the Middle East. These crises have disrupted global energy markets, supply chains, and financial systems, underscoring the need for resilience in business planning.
The war in Ukraine has driven energy costs higher, particularly in Europe, where reliance on Russian natural gas remains significant. Companies like Siemens and Unilever have navigated these challenges by investing in renewable energy and diversifying their supplier networks. In the Middle East, the conflict has disrupted logistics in critical trade corridors, prompting businesses to evaluate alternative routes and partnerships.
In 2025, resilience will be a critical theme for global business. Companies must diversify supply chains, invest in geopolitical risk assessments, and develop contingency plans to mitigate the impact of unforeseen disruptions. Collaboration with in-market partners and leveraging local expertise will be key to maintaining operational stability in volatile regions.
Preparing for 2025: Strategic Takeaways
As businesses navigate an increasingly complex global landscape, here are strategies to adopt for 2025:
- Capitalize on Nearshoring:
Evaluate markets in Latin America and Southeast Asia for production and logistics to reduce geopolitical risks and enhance efficiency.
- Embrace Generative AI with Workforce Training:
Invest in technology and upskill employees to create a harmonious blend of AI-driven innovation and human expertise.
- Embed Sustainability into Operations:
Meet regulatory demands and consumer expectations by committing to carbon-neutral practices and circular economies.
- Build Resilience Against Uncertainty:
Diversify supply chains, evaluate geopolitical risks, and collaborate with local partners to navigate disruptions effectively.
Looking Forward
The events of 2024 have shown that global businesses must be prepared to adapt to political shifts, embrace technological advancements, and address sustainability challenges. As we enter 2025, those who prioritize resilience, innovation, and strategic planning will thrive in a rapidly changing world.
For more insights into these trends and how your business can prepare, download Factum Global’s Biannual Executive Sentiment Survey Report here.
