AI in the rubber industry supply chain will be a game changer in the future
India is the fourth largest consumer of natural rubber and is the third largest producer of rubber in the world. Rubber is used in a wide range of products and by various industries. This is the main reason why the rubber industry is transforming into a very potential industry and is growing at a significant rate. AI technology-driven world, every industry is looking forward to various advancements that can save cost, enhance their product, increase efficiency and effectiveness and offer a high rate of return. Similarly, various companies have started using artificial intelligence in the rubber market.
The efficient use of artificial intelligence and blockchain technology in the rubber industry can realize more value through predictive analytics. The application of AI in the rubber industry will be a game changer in the future. AI-based technology uses real-world data to analyze the internal structure and properties of industrial rubber. The active use of data transformation technologies has resulted in new business models, new goods and services with increased usefulness, and new management culture. AI helps in accelerating the development of compounds, reduction in costs, and developing improved and better-performing rubber products. This technology-driven analysis has a lot of potential, especially in this growing sector.
Impact of the Russia-Ukraine war:
The Russia-Ukraine war is having an outsized impact on the global supply chain, impeding the flow of goods, fueling dramatic cost increases and product shortages, and creating catastrophic food shortages around the world. Senior Agricultural Economist, John Baffes said non-energy prices are likely to jump 20% in 2022, with the greatest increase in commodities where Russia or Ukraine are important exporters.
The world economy will pay a “hefty price” for the war in Ukraine encompassing weaker growth, stronger inflation, and potentially long-lasting damage to supply chains. The shock of the Ukrainian conflict, combined with the epidemic, has produced supply interruptions with artificial intelligence in several goods, including oil, food, and fertilizers. Most prices are projected to rise considerably in the current fiscal year and the medium future. On the other hand, worldwide inflation has been revised upwards for both 2022 and 2023 by predictive analytics.
China’s lockdown impact:
China’s inflation data will also be in focus as shortages of food and other goods, also triggered by lockdowns, drive up costs. China’s lockdown could also play a key role in both supply and demand for industrial commodities. Policymakers should give priority to supporting poorer households facing higher food and energy prices. Over the long term, they can encourage energy efficiency improvements, in the rubber industry, facilitate investment in new sources of zero-carbon energy, and promote more efficient food production.