PwC reported yesterday the results of a survey across 7 industry sectors in Europe, the US and Asia. The report showed that executives are increasingly concerned that minerals and metals will become scarcer over the next 5 years. According to the report economic and political drivers are generally seen as more important than physical drivers (such as the exhaustion of reserves).
With raw material scarcity (or even the perception of it) causing issues across supply chains, the need to manage both volume and price risk are likely to become increasingly important. In dealing with material scarcity, resource efficiency was seen as the single most effective response with strategic alliances with suppliers, diversification of material sourcing and re-use also seen as key ways to reduce risk.