Adapting To Industry Changes

If you live in the Mid-Atlantic region and don't know what PJM Interconnection is, pay attention. PJM was founded 99 years ago to manage the distribution of electricity over Pennsylania (P), New Jersey (J), and Maryland (M). Since then, the nonprofit company has expanded to include Delaware, Virginia, West Virginia, Ohio, Washington DC, half of Kentucky, and significant parts of Michigan, Indiana, North Carolina, and Illinois (including Chicago). It is the largest single power grid in the United States. Headquartered in Valley Forge, PA, PJM provides electricity to 67 million Americans. PJM coordinates the movement of electricity between all the different power companies within its service area, such as PECO in Philly, Delmarva Power in Delaware, and all the other power companies listed in the graph. PJM operates as a traffic cop for electricity generators, making sure that power plants (gas, coal, nuclear, etc.) operating in its service area are distributing electricity as needed across the entire grid so that no area goes without necessary power. Think of what air traffic controllers do at airports, guiding the planes in and out, making sure there is order and no mistakes, 24 hours a day. PJM does that with electricity. The problem is the rapid proliferation of AI data centers, particularly in Northern Virginia and Maryland (around DC) which is the most concentrated collection of data centers in the USA. These data centers just plug into the PJM grid and started sucking up power to the point that PJM is running nearly all the time at max capacity. If you live here and haven't felt the impact of electricity price increases, you will soon. Many power companies have price caps in place, but that won't last. In capacity auctions, where power resources commit to be available in years ahead, prices have gone parabolic; from $2.2B to $14B (a 536% increase), largely due to forecasted load growth from data centers. It's a challenge to generate a political solution with governors of both parties in the service area. Plus, the Trump Administration is now getting involved. The Energy Secretary and Interior Secretary hosted 13 state governors involved at the White House 1/16 where there was an agreement on 2 key principles: 1- Emergency Power Auction - the idea is to compel data centers to participate in financing new power plants by buying 15 years of power in advance. Data centers would bid for these contracts, hence the auction. 2- Price Caps - to shield the 67 million Americans from exponentially higher electric bills, it is proposed to cap electricity bills for 1-2 years. It is unclear who will absorb the risk and cost to make this happen. In many states price caps are already protecting Americans. If a solution can't be reached soon, it is increasingly likely that rolling blackouts will happen across the service area during high-load periods (extreme heat or extreme cold). Be prepared. #riskmanagement #interestrates #fedpolicy

China is electrifying its trucking fleet so fast that it’s now reshaping global diesel demand. This has not been widely covered by the mainstream media. Here's how quickly things have shifted: ➡️ 2020: Nearly every new truck in China was diesel ➡️ H1 2025: Battery-electric trucks hit 22% of new sales ➡️ 2026: expected to reach 60% – a majority share And what's driving this shift? Economics. Rapidly falling battery prices mean electric trucks are now cheaper to own and operate than diesel or LNG alternatives. Fleet operators are also increasingly adopting depot charging, opportunity charging and battery-swap networks – removing the last points of friction. And this matters: road freight accounts for around one third of all transport emissions. The impact on oil demand is already visible: ✅ China's electric trucks are already cutting oil demand by the equivalent of more than one million barrels a day. ✅ China's transport sector is forecast to use 40% less diesel in 2030 than in 2024. So why did analysts miss this? Most models assumed heavy trucks would be the last segment to electrify – but China moved faster on battery-swap infrastructure, ultra-cheap LFP batteries, and high-utilisation urban freight fleets than expected. The economics flipped earlier than the forecasts. The result: diesel demand in China – the world’s second-largest consumer – could fall much faster than many predicted. And that's not all. Already the world's largest exporter of passenger cars, China is now eyeing the global electric truck market. Adoption is growing in the Middle East and Latin America and BYD is building a new electric truck and bus factory in Hungary. This is just the beginning. #energy #renewables #energytransition

For years, the biggest players in CPG and FMCG—Unilever, Nestlé, Kraft Heinz—built their empires on food. But now? They’re making a massive pivot..if you had told me 5 years ago that these brands would be pulling back from food, I would’ve raised an eyebrow. -Unilever is cutting loose its $8 billion ice cream division, choosing to focus on higher-margin beauty and wellness. -Nestlé is doubling down on health-science-based nutrition as food brands struggle with pricing power. - #CPG giants are seeing stronger growth in self-care, supplements, and skincare than in traditional food categories. The global personal care market is expected to hit $758 billion by 2030, while processed food growth slows. Why This Shift? 1. Margins in food are shrinking. Consumers are trading down, private labels are winning, and inflation-wary shoppers aren’t absorbing cost hikes like they used to. 2. Health & wellness are driving premiumization. Customers will pay more for skincare, supplements, and functional beverages—but not for basic pantry staples. 3. Brand loyalty in food is eroding. Over 50% of consumers are comfortable switching food brands based on price, but loyalty remains strong in beauty, healthcare, and wellness. Winning Brands Are Already Moving: -L'Oréal’s skincare division posted 9.1% revenue growth last year, while traditional CPG food brands saw single-digit declines. -The Coca-Cola Company is investing in functional drinks and non-carbonated wellness categories to stay relevant. -PepsiCo’s biggest success? Gatorade’s expansion into hydration and performance-based drinks, not soda. CPG Leaders: ✅ Stop thinking of food as the core driver of growth. Instead, align with evolving consumer behavior. ✅ Invest in personalization, self-care, and functional health. That’s where demand (and pricing power) is strongest. ✅ Rethink your brand mix. Is your portfolio weighted toward categories that will still be relevant in 5-10 years? So, here’s my question to FMCG execs: Are you future-proofing your brand strategy—or just managing decline? Let’s talk. #FMCG #CPG #ConsumerTrends #GrowthStrategy #Beauty #Wellness #RevenueShift #BrandEvolution "

Louder for the people at the back 🎤 Many organisations today seem to have shifted from being institutions that develop great talent to those that primarily seek ready-made talent. This trend overlooks the immense value of individuals who, despite lacking experience, possess a great attitude, commitment, and a team-oriented mindset. These qualities often outweigh the drawbacks of hiring experienced individuals with a fixed and toxic mindset. The best organisations attract talent with their best years ahead of them, focusing on potential rather than past achievements. Let’s be clear this is more about mindset and willingness to learn and unlearn as apposed to age. To realise the incredible potential return, organisations must commit to creating an environment where continuous development is possible. This requires a multi-faceted approach: 1. Robust Training Programmes: Employers should invest in comprehensive training programmes that equip employees with the necessary skills for their roles. This includes on-the-job training, mentorship programmes, online courses, and workshops. 2. Redefining Hiring Criteria: Organisations should revise their hiring criteria to focus more on candidates’ potential and willingness to learn rather than solely on prior experience or formal qualifications. Behavioural interviews, aptitude tests, and probationary periods can help assess a candidate's ability to learn and adapt. 3. Partnerships with Educational Institutions: Companies can collaborate with educational institutions to design curricula that align with industry needs. Apprenticeship programmes, internships, and cooperative education can bridge the gap between academic learning and practical job skills. 4. Lifelong Learning Culture: Encouraging a culture of lifelong learning within organisations is crucial. Employers should provide ongoing education opportunities and support for professional development. This includes continuous skills assessment and access to resources for upskilling and reskilling. 5. Inclusive Recruitment Practices: Employers should implement inclusive recruitment practices that remove biases and barriers. Blind recruitment, diversity quotas, and targeted outreach programmes can help ensure that diverse candidates are given a fair chance. By implementing these measures, organisations can develop a workforce that is adaptable, innovative, and resilient, ensuring sustainable success and growth.

Shopping Malls Find New Life as College Campuses CLEVELAND — Where teenagers once congregated around food courts and shoppers browsed department store racks, students now hurry to lectures, study in converted retail spaces, and even live in former anchor stores. Across America, developers and educational institutions are reimagining struggling shopping centers as college campuses and student housing, creating an unexpected second act for these fading temples of consumerism. These spaces were built for crowds, The infrastructure is already perfectly suited for educational purposes—wide corridors, multiple entrances, food service capabilities, and acres of parking. The transformation makes financial sense. Construction costs for new university buildings have soared past $500 per square foot in many regions, while renovating existing mall structures can cost 30 to 40 percent less, according to the American Association of College Facilities Officers. At the former Eastgate Mall outside Cincinnati, classrooms now occupy what was once a Sears. Students study in a library housed in an old JCPenney, while the food court serves as a student union with healthier dining options than its previous incarnation. "We're addressing two problems simultaneously," said Cincinnati Mayor Aftab Karma Singh Pureval. "We're preventing urban blight while expanding educational access in communities that desperately need it." The trend is spreading nationwide. The University of Arizona established a campus at The Bridges, a converted Tucson mall complex. Northern Virginia Community College transformed a vacant Macy's into a medical training center complete with simulation labs. For students, the benefits extend beyond novelty. Mall-campuses tend to be more accessible by public transportation than traditional universities, serving commuter students and those from lower-income backgrounds who cannot afford to live on campus. Some developers are even converting upper floors and outparcels into affordable student housing, addressing another critical need in higher education. Educational leaders see these conversions as more than stopgap solutions. The approach fights urban blight while providing local educational opportunities that don't require students to leave their communities. "Instead of one massive central campus, universities can create satellite locations where students already live and work." With retail analysts predicting thousands more mall closures in the coming decade, and higher education facing infrastructure challenges, these conversions represent an elegant solution to multiple problems. What was once a sign of economic decline may become the classroom of tomorrow.

88,000 trucking companies died last year. Not struggling. Not downsizing. Gone. That's: • 241 companies per day • 10 companies per hour • 1 company every 6 minutes A 650% increase from pre-pandemic levels. But here's what nobody's talking about: 95% of survivors run less than 10 trucks. The small fleets aren't dying. The unfocused ones are. One Texas fleet owner told me why: "It's not about fleet size anymore. It's about fleet focus." He's right. The data shows 3 killers: → Financial mismanagement (68%) → Operational waste (58%) → Strategic confusion (42%) Success demands strategy at every level: → Financial strategy (not just bookkeeping) → Operations strategy (not just dispatching) → Recruitment strategy (not just hiring) The companies that survive aren't the biggest. They're the most strategically aligned. Stop treating these as separate problems. Start building an integrated strategy.

The recent transformations within leading Consumer Packaged Goods (CPG) and Fast-Moving Consumer Goods (FMCG) companies signify a paradigm shift underscored by the necessity to adapt to evolving consumer preferences. As these brands pivot away from traditional food categories toward personal care and wellness, they are responding to critical market dynamics: shrinking profit margins in food sectors, a surge in health-conscious consumer behavior, and eroding brand loyalty among food products. This transition illustrates how businesses must not only recognize but anticipate changes in consumer values, particularly the growing inclination towards premium self-care and wellness products. The implications of this shift are profound. For instance, while the global personal care market is projected to reach $758 billion by 2030, the sluggish growth within processed food sectors signals a pressing need for CPG leaders to innovate continually. The evidence revealed through L'Oréal’s robust revenue growth in skincare juxtaposed with declines in traditional food categories serves as a clarion call for all CPG firms: the future lies in aligning product offerings with consumer demands for personalization, health optimization, and quality over quantity. Thus, the critical question posed to FMCG executives is not merely one of survival but of strategic foresight: Are you actively redefining your brand strategy to harness the potential of emerging categories, or are you resigned to merely managing a downward trajectory? This moment is not just about adaptation; it represents an opportunity for reinvention and sustained relevance in a rapidly changing consumer landscape.

CEO: Our margins are getting tighter. FP&A: Let’s cut costs. CEO: We’re missing revenue targets. FP&A: Let’s reforecast. CEO: Our cash flow is unpredictable. FP&A: Let’s track it closer. CEO: We’re losing market share. FP&A: Let’s adjust assumptions. This is how finance becomes a back-office function. And it’s why most FP&A teams get ignored in strategy meetings. Instead, try this: 1. Turn data into decisions, not just reports CEOs don’t need more charts. They need answers. If your reports don’t drive action, they’re just noise. FP&A teams that translate numbers into clear next steps get a seat at the table. 2. Make forecasting dynamic, not static Annual budgets are already outdated by Q2. Winning teams run rolling forecasts that adapt in real-time, using leading indicators to predict what’s next, before the business feels the impact. 3. Use capital as a competitive advantage The best companies don’t just cut costs, they allocate capital better. Instead of reacting to margin pressure with blanket cuts, double down on high-ROI opportunities and phase out low-value spending. 4. Speak the language of business Finance gets ignored when it talks in numbers, not outcomes. Saying, “Gross margin fell by 2%” misses the mark. Saying, “Optimizing pricing can recover $5M in profit next quarter” gets action. 5. Don’t wait for leadership to ask The best FP&A teams don’t wait. They anticipate challenges, model different scenarios, and push strategic moves before the company is forced to react. Influence happens when finance drives the conversation, not follows it. The FP&A teams winning in 2025 aren’t managing costs. They’re out-executing their competitors. FP&A sees what’s coming first. Follow Erik Lidman for FP&A insights.

On August 1, 2024, the European Union's AI Act came into force, bringing in new regulations that will impact how AI technologies are developed and used within the E.U., with far-reaching implications for U.S. businesses. The AI Act represents a significant shift in how artificial intelligence is regulated within the European Union, setting standards to ensure that AI systems are ethical, transparent, and aligned with fundamental rights. This new regulatory landscape demands careful attention for U.S. companies that operate in the E.U. or work with E.U. partners. Compliance is not just about avoiding penalties; it's an opportunity to strengthen your business by building trust and demonstrating a commitment to ethical AI practices. This guide provides a detailed look at the key steps to navigate the AI Act and how your business can turn compliance into a competitive advantage. 🔍 Comprehensive AI Audit: Begin with thoroughly auditing your AI systems to identify those under the AI Act’s jurisdiction. This involves documenting how each AI application functions and its data flow and ensuring you understand the regulatory requirements that apply. 🛡️ Understanding Risk Levels: The AI Act categorizes AI systems into four risk levels: minimal, limited, high, and unacceptable. Your business needs to accurately classify each AI application to determine the necessary compliance measures, particularly those deemed high-risk, requiring more stringent controls. 📋 Implementing Robust Compliance Measures: For high-risk AI applications, detailed compliance protocols are crucial. These include regular testing for fairness and accuracy, ensuring transparency in AI-driven decisions, and providing clear information to users about how their data is used. 👥 Establishing a Dedicated Compliance Team: Create a specialized team to manage AI compliance efforts. This team should regularly review AI systems, update protocols in line with evolving regulations, and ensure that all staff are trained on the AI Act's requirements. 🌍 Leveraging Compliance as a Competitive Advantage: Compliance with the AI Act can enhance your business's reputation by building trust with customers and partners. By prioritizing transparency, security, and ethical AI practices, your company can stand out as a leader in responsible AI use, fostering stronger relationships and driving long-term success. #AI #AIACT #Compliance #EthicalAI #EURegulations #AIRegulation #TechCompliance #ArtificialIntelligence #BusinessStrategy #Innovation 

Imagine you're the CFO of a global company and someone pitches you a recruitment automation solution that will do the work of 400 recruiters and save you $30M per year. What would you do? When I was at LinkedIn's Talent Connect in October, I attended a workshop with John Vlastelica in which he shared that a global company had decided to implement a recruiting automation solution that would allow them to save $30M in costs by eliminating 400 recruiter positions. They also reduced the time to hire from 11 days down to 3. He shared that another company had used recruitment automation software to hire 300,000 workers with minimal human involvement - people only came into the process after background checks had been performed. They also maintained candidate quality and candidate experience while increasing the speed of hire. These kinds of case studies should not surprise anyone, although it is sobering to anyone in talent acquisition - the rapid advancement of AI and automation in recruiting is both exciting and concerning. On the one hand, the potential for efficiency gains, cost savings, and improved candidate experience is huge and undeniable, as these examples demonstrate. On the other hand, we must also be mindful of the human impact - thousands of recruiters are seeing their roles transformed or eliminated. As talent acquisition professionals, it's important to be thinking about how to adapt and provide value in this changing landscape. Some key questions to consider: -How can we upskill and position ourselves to work alongside AI rather than be replaced by it? -What are the uniquely human elements of recruiting that AI can't replicate, and how do we double down on those? -How might our roles evolve to focus more on passive talent sourcing, talent intelligence/advisory, strategic workforce planning, employer branding, candidate engagement, and employee experience? For companies considering or implementing recruitment automation, I believe it should be a thoughtful, strategic decision - not just a blind cost-cutting measure. Here are some key considerations: -What is the optimal mix of human and automated touchpoints to balance efficiency and candidate experience? -How will the balance of AI and human involvement vary based on the labor market dynamics for each role? Roles with talent scarcity may require more human touch to attract and engage candidates, while high-volume roles with ample supply lend themselves to greater automation. -How will we redeploy or reskill displaced recruiters? -How do we maintain our employer brand and human touch with increased automation? The future of recruiting is undoubtedly both human and machine - but the mix is up to each company and may vary by role/department. I'm curious to hear your thoughts - have you been impacted by AI/automation? How are you and/or your company preparing for the intersection of AI/automation and recruiting? #AI #Recruiting #FutureOfWork