This week in brief

• Travel and tourism’s far-reaching impact
• Buses and trucks are driving an electric vehicle revolution
• Transformation in retail is the key to survival: just ask UGG
• Workforce challenges hamstring government
• UK skilled labor shortage worst since 1989

Numbers of the week:

Beyond the four corners of the world: the impact of travel and tourism

More than 100 years ago, U.S. President Teddy Roosevelt sought adventure by exploring the previously unknown “River of Doubt”, a rambunctious tributary of the Amazon. He almost perished, in large part due to being horribly ill prepared, but the spirit of that expedition and the lure of the Amazon lives on today.

The appetite of travelers for new destination experiences has opened up or expanded new markets, like Amazon cruises, which offers unique access to pristine wilderness, native cultures, and history. Driven by increasing demand from Asia, the cruise industry grew 6.5% in 2016 and is projected to increase 4.5% in 2017.

This is just one aspect of an ever-growing trend: What was once thought of as luxury or exotic is increasingly becoming available to everyone. Travel site SkiftX reports that since technology allows for personalization, the definition of luxury can, and does, mean something different to everyone.

THE ANGLE:

• The global travel and tourism industry is expected to grow by 4.0% per year over the next decade, faster than the global economy (2.7%)
• Business and leisure travel generated 7.6 trillion in GDP globally (10.2%)
• Travel & Tourism supports 3.5x more jobs than banking — that’s 108.7 million jobs
• Travelers have changing expectations about how they plan for and purchase their trips
• About 50% of travelers believe that the best experiences are adapted to their preferences

Soon electricity will make the wheels on all buses go round and round

Move out of the way cars, because vans, trucks, and buses are driving the electric vehicle revolution. Despite being only 5% of all vehicles in Europe, these larger vehicles pollute far more than cars, around 20% in greenhouse gas emissions. Government bans on petrol and diesel vehicles and cheaper component parts are sparking this move to electric vehicles. With 300 million commercial vehicles on the planet’s roads, according to Statista, the environmental impact will be enormous.

By 2030, 57% of vehicles produced each year will be electric. And some predict electrification will prove to be a far greater disruption than other technology changes — with 75% of the industry’s top suppliers facing irrelevance. The industry is at a crossroads, with trends such as autonomous, electric, and IoT pushing the need for new infrastructure, specialized hardware/software, and cross industry partnerships.

Transformation is the key to survival: just ask UGG

Looking to break out of its seasonal straitjacket, UGG is creating shoes for all four seasons, not just winter. They have seen success with their sneaker and sandal offerings, boosting their performance in the spring and summer months.

The brand is most well-known for its classic boot and other winter offerings, which can be a difficult position for a retailer looking to expand into warmer-weather items. After all, when the snow melts the Uggs go to the back of the closet. They want to change that.

UGG’s aim for a come-back illustrates how transformation is key in retail. There is an ongoing need for strategic change, and brands cannot remain satisfied or complacent for long. After all, UGG should look to its own history for an example of profitable transformation — their boots were originally designed to warm the feet of surfers.

Workforce challenges bedevil government leaders

Workforce issues remain a hot-button issue for state and local governments. Constrained revenues, low employment in some areas, and dramatically shifting demographics are creating a quagmire for progress. Baby boomers are retiring in droves, leaving a vacuum of experience and skillsets, but also an opportunity for building a workforce of the future.

Recruiting and retaining qualified personnel was the top priority for 91 percent of respondents to the Center for State and Local Government Excellence’s 2017 workforce trends survey. Among the most difficult positions to fill are those in policing (21%) and information technology (17%). And of skills that are needed from new employees, 51% said IT.

Workforce development is also important. This underlines the need for government to rethink their talent development, such as hiring beyond immediate needs, implementing employee development programs, and bringing in private sector talent to foster creativity.

Skilled labor shortage hits 28-year high for UK’s small manufacturers

Fears that a shortage of skilled labor would restrict SME production rose to their highest level since October 1989 — way back when the Berlin Wall was still standing and the Internet wasn’t publicly available. With the UK employment rate dropping to 4.5% and a potential reduction of skilled migration as a result of Brexit, small and medium-sized (SME) manufacturers worry that the hunt for the right employee will become even more challenging. Companies may look to develop homegrown skills as they cast a wider net outside their communities.

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