Supply chains have not fully recovered from disruptions

Sedgwick has released its “Imagine 23” report of major industry trends and issues that employers, brokers, carriers, risk managers, human resources professionals and product safety experts should be aware of throughout the coming year.

The trends are focused on the principles of resilience, loss prevention and claims excellence. Operating in a globalised and connected environment, organisations must be acutely aware of the changes — in regulations, technology, consumer preferences, supply chains — as well as the related risks.

The supply chain has not fully recovered from years of factory closures, border restrictions and overcrowded ports, it warns. Inventory levels are still a concern.

With a looming global recession, the 2023 supply chain will be indicative of economic recovery, as it tracks consumer behavior and supply and demand for goods.

Skilled labour shortage

Logistics management is equally reliant on people and supplies, and a multi-year shortage of skilled labour is a compounding concern across industries, including construction, manufacturing and healthcare.

Potential deficits are alarming as we see younger professionals shifting to other fields or remaining out of the workforce, older generations nearing retirement, and lower rates of immigration in many parts of the world.

A shift in operational strategy and tactical thinking will be required, including adding new approaches to attract talent, reskilling the available talent pool, as well as creating gig opportunities and building independent resource networks in hard-hit fields.

Supply chain factors can directly impact claims; labour and material shortages may mean delays in building and auto repairs. Diversification of suppliers can help reduce turnaround times. Temporary housing solutions may provide relief for those affected by delays.

“We’re living in a world of constant change and evolving challenges,” said Kathy Tazic, managing director, client services at Sedgwick. “We believe there is opportunity to imagine the possibilities for growth and embrace change so we can best serve our global client base.

The report anticipates that the ongoing impact of inflation and broad geopolitical pressures will be rivaled in 2023 by growth in automation, new strategies for managing claims performance, and the use of technology and data to redefine quality in the claims process.