Chris’ note: As countries distribute COVID-19 vaccines, businesses are reopening. And society is starting to get back on its feet.
But as our tech expert, Jeff Brown, explains in today’s dispatch, there’s no going “back to normal.” And it’s not all doom and gloom. Read on for the top three transformations Jeff sees ahead.
And to learn how to position yourself to profit, mark Jeff’s Investment Accelerator event on your calendar for next Wednesday at 8 p.m. ET. Reserve your free seat here.
Now, over to Jeff…
Last year, the world changed.
In the wake of COVID-19, our society came to a standstill.
Nonessential businesses were closed. Cities were quarantined. International flights were empty. Hotels were shuttered. Cruise ships sat dormant at their ports.
And many of these halted industries are only just starting to reopen…
We could spend all day listing how COVID-19 has changed our world over the past year.
But today, I won’t spend more time discussing how this virus has changed our past and present. Instead, I’ll show you what it means for our future.
Things are getting better… rapidly. Multiple effective vaccines are already available. The world is starting to get back to school and work.
But the post-virus world will be different from the one we left when society entered “self-isolation.”
And this virus has been the catalyst technology companies have been waiting for.
Our slow, gradual digital transformation is over. Technologies that were once “nice to have” are now vital to businesses’ survival. They’ve even become integral parts of our personal lives.
COVID-19 will have a long-term impact on how we work, socialize, and entertain ourselves.
Today, I’ll show you the three biggest transformations I see coming.
As production ground to a halt in China early last year, it didn’t take long to disrupt supply chains.
Consider this…
About 80% of the drugs taken in the U.S. and Europe have ingredients made in China. What if people don’t have supplies of life-saving drugs?
What if pharmaceutical companies don’t have the ingredients to produce more?
What if medical-device manufacturing companies don’t have the key electronic components required to make ventilators?
Suddenly, the world realized how fragile its supply chains are.
I believe this experience is a catalyst for changing where and how products are made. Rather than having a highly centralized manufacturing infrastructure primarily in mainland China, companies and countries will look to bring their manufacturing back onshore.
Labor cost differentials just aren’t that large anymore.
And with 3D printing, computer vision, robotics, artificial intelligence (AI), and automated manufacturing, companies can now affordably make their products in developed markets.
I’m envisioning a future where goods will be “printed” or produced at smaller manufacturing sites close to the markets they serve.
Not only would this reduce the risk of supply chain disruptions, but it would also cut logistics costs and speed up delivery time.
The reality is that this massive shift had already started during the tense trade negotiations between the U.S. and China. The global pandemic simply kicked it into high gear.
Contrary to what many people think, this new revolution in manufacturing will create, not eliminate, jobs. Millions of new jobs will be created to build and maintain this next generation of manufacturing facilities.
This is a decade-long process with a completely new manufacturing infrastructure that needs to be built. We’re being forced to rethink and reinvent how and where the world produces the things it wants and needs.
In March 2020, an early stage biotech company called AbCellera (ABCL) got a blood sample from a patient who had recovered from COVID-19.
AbCellera’s mission was to screen the blood sample for antibodies that helped the patient fight the virus. Knowing which antibodies are effective against the virus is invaluable. It helped researchers create an effective therapy for COVID-19.
Typically, this process would have taken years. But get this: AbCellera screened more than 5 million immune cells. The company then identified 500 antibodies that were effective against COVID-19.
And it did it all in just 11 days…
Its secret weapon was artificial intelligence. The company “unleashed” an AI on the sample and got results in under two weeks.
This is incredible. The company found these antibodies in a fraction of the time thanks to AI.
Eli Lilly (LLY) stepped up to partner with AbCellera in May 2020. By November, the U.S. Food and Drug Administration (FDA) had already granted emergency use authorization to the antibody treatment they developed, bamlanivimab.
And AbCellera isn’t alone in its feat. Pfizer (PFE), together with BioNTech (BNTX)… and Moderna (MRNA)… produced viable vaccines in similar timeframes.
The whole biotech industry is moving in this direction. The pace of development is unlike anything I’ve seen before.
The exponential growth of COVID-19 has taught the world we can no longer wait years or even decades to develop effective therapies. And thanks to AI, we won’t have to.
In the future, AI will make the world nimbler when reacting to new viruses like COVID-19. It will accelerate the development of new drugs and therapies to cure diseases the world over.
When businesses shut down their offices, legions of workers began learning to navigate videoconferencing and teleconferencing technologies.
And businesses are realizing cloud-based applications are no longer just convenient pieces of technology to have. They’re essential to continuing daily operations.
Even as some offices reopen, businesses will continue to utilize these technologies.
I’m not saying we’ll never go into a traditional office again, though that may be the case for some companies. But I predict workweeks will change. We’ll spend fewer hours at the office. All business travel will be reconsidered. Anything that can be done remotely will be.
And tech like augmented reality and telepresence – even the use of holographic images – will only speed up this shift in how and where we work. Imagine having a holographic version of yourself “broadcasted” into your next staff meeting.
That day is fast approaching.
But these technologies have one thing in common. They require exponentially more bandwidth. Today’s wireless and wired networks simply aren’t up to the task.
Nokia (NOK) released data during the height of the pandemic saying that most 4G wireless networks around the world normally see 30-45% growth in traffic over a year. But peak usage had jumped 20-40% over just a few weeks.
The European Union (EU) even asked Netflix (NFLX), Disney (DIS), Zoom (ZM), and Facebook (FB) to cut the quality of their videos to ease the strain on the networks.
That brings me to the third transformation – countries are racing to adopt 5G wireless tech as well as upgrade their fiber-optic networks and data centers. Otherwise, it will be impossible to handle all the traffic.
5G will be 100 times faster than current 4G wireless internet. It will support the bandwidth needs of these applications we’re adopting so rapidly. It will also support a new generation of applications using these high speeds and virtually delay-free connections. A 5G-powered world is close at hand.
Events the magnitude of COVID-19 don’t happen often. But they do happen. And while they’re painful, they can be forces for radical change.
When the dust settles on COVID-19, the world will be forever changed. There’s no going “back to normal.”
Many industries will suffer. More airlines will go bankrupt. Hotels will struggle. Rental car agencies will face tough times.
But tech companies are already thriving… and will continue to do so. This will lead to some of the best investing opportunities of this decade… and perhaps our lives.
And I’ve discovered the perfect way to position ourselves for the future…
On Wednesday, February 10 at 8 p.m. ET, I’ll share the details with you during my Investment Accelerator event.
You’ll hear all about the tech investments I believe will produce 10x gains in the post-COVID-19 world.
I’ll also reveal the details of my most ambitious project to date… and how you can join me for the chance to share in $1 billion of tech stock profits.
You can go right here to reserve your spot for free.
I look forward to seeing you there.
Regards,
Jeff Brown
Editor, The Near Future Report