We have commented before about the broad negative impact that the worldwide coronavirus pandemic is having on demand for raw materials ranging from copper and energy to renewable commodity crops such as grain, oilseeds and cotton. This situation, along with the strange decision by the Saudis and Russia to keep their oil pumps running, has resulted in the current huge surplus of crude oil supplies along with a shortage of storage capacity. However, producers of copper, crude oil and similar commodities can control production in the face of falling demand if they chose to. Realistically, producers of renewable crops around the world do not have the same flexibility. “Demand destruction” is a term used so frequently in the last th...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.