INSUBCONTINENT EXCLUSIVE:
Globally, corporate capital expenditure will jump by 13% this year, according to S-P Global Ratings.Global companies from noodle makers to
semiconductor giants are spending on new plants and machinery in ways they haven't done for years
On the supply side, blockages brought on by the Covid-19 pandemic are forcing businesses to invest in new production facilities; calls for a
cleaner environment are spurring spending on electric vehicles, batteries and alternative energy; and the big semiconductor crunch has
prompted a wave of investment.On the demand side, pent up consumer spending is convincing executives that capital is worth outlaying -- a
sign that business is buying into the world's economic recovery prospects even as the delta strain casts a shadow
Driving it all are low interest rates and bets they'll stay that way.Globally, corporate capital expenditure, or capex, will jump by 13%
this year, according to S-P Global Ratings, with growth in all regions and broad sectors -- especially in semiconductors, retail, software
Economists at Morgan Stanley forecast that global investment will reach 115% and 121% of pre-recession levels by the end of 2021 and end of
expediting pre-Covid trends." -- Anna Wong, chief U.S
economistWith inflation jitters rising, central bank tapering looming and supply chain chaos continuing, the capex surge offers a rare ray
of hope for the global economy into 2022 and beyond
It's also a very different dynamic from the last global crisis of 2008, when austerity and weak investment dragged on employment and wages
spending are evident from emerging markets to the world's biggest companies.Nepal based conglomerate Chaudhary Group -- whose products
includes noodles, snacks and beverages and supplies more than 35 countries -- is expanding in Egypt to manufacture noodles for the African
The new plant will make one million packets of noodles a day, employ 500 staff and cost about $10 million to develop, GP Sah, global
business head of the fast moving consumer goods division, said in an interview
The company is also eyeing opportunities in Latin America
in February said it would invest about $14 billion this year on areas including supply chain, automation and technology, up from the $10.3
billion it spent the year before
through the second quarter -- the strongest pace since 1984
at Eaton Corp., whose products include clutches and brakes, said on an Aug
Global Ratings predicting a 16.6% increase in 2021 -- its best year since 2006
Business investment in the U.K., which has been suppressed by the nation's exit from the European Union, has also started to recover, but
was still more than 15% below its pre-pandemic level at the end of the second quarter.Working from home and the resulting surge in the
digital economy has driven demand for semiconductors, leaving a shortage that is reshaping investment into the sector
South Korea plans to spend roughly $450 billion, led by Samsung Electronics Co
leading a recovery in capital investment
Rohm Co, a chipmaker whose customers include Toyota Motor Corp., Ford Motor Co
The Kyoto-based chip maker has factories in China, Malaysia, South Korea, Thailand and Philippines as well as domestic ones
governments push through clean energy policies
A record $174 billion was invested in solar, offshore wind and other green technologies and companies in the first half of this year,
where the spike in several electric carmakers' marketing and R-D expenses last quarter was notable
reported a wider-than-estimated loss in part because R-D staff ballooned to more than 3,000 employees as of June 30, an increase of nearly
will lose momentum as consumer demand cools or that a goods shortage will reverse into a supply glut once the pandemic's acute phase passes
Economists also say some of the investment may not be as productive as it looks, which would leave much promised jobs and plants looking
by trends such as supply chain diversification or accelerated automation in the services sector as workforces age, according to Karen
Harris, managing director of consultancy Bain's Macro Trends Group in New York
the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
