Six degrees of separation

The world is shrinking. Thanks to ease of travel, improved communications and globalised trade, our networks have grown larger and now cover greater distances than ever before. According to Hungarian author Frigyes Karinthy, each of us is connected to any of the more than six billion people on the planet through an average of five acquaintances. Let’s take Sam and Joe – Sam knows Elaine, Elaine knows Suresh, Suresh knows Deepa, Deepa knows Roy, Roy knows Joe. Sam and Joe stand six degrees apart, and thus the rule is called Six Degrees of Separation. Apparently, you can apply this theory to any two people in the world.

Now I wonder how many degrees would separate us if we factored in goods. This thought struck me as I stood on the quay wall of Port Zayed in Abu Dhabi, watching a vacuum move grain from a bulk carrier from Canada to the Grand Mills for Flour & Feed silos. I looked at a pile of wheat that had fallen on the concrete and wondered if it had come from my Uncle Trev’s farm.

And I couldn’t help but reflect upon the importance of our industry. It is supply chain managers and logistics professionals, after all, who minimise distances, shorten the supply chain and expand our networks. They are the ones placing me only one degree from family on the other side of the globe. They are the ones shrinking the world.

With trillions of projects underway, the GCC construction industry appears to be growing, but developers may have to shrink their plans down to scale thanks to supply shortages. Contractors are finding it more and more difficult to secure basic materials such as steel, and many projects are up to months behind. When procurers finally do secure supplies, they end up paying phenomenal prices. Steel prices in Abu Dhabi, for example, surged 91 per cent in the first half of this year.

I’ve heard a lot of people complaining about this issue, but have seen few innovative solutions, besides short-term fixes such as securing contracts with suppliers and government removal of tariffs. The only long-term answer, however, is for GCC countries to start producing more construction supplies themselves. This means more factories for cement, glass, marble, tiles, drywall, rebar, even steel.

And now I’m about to eat my words. Literally seconds ago, our reporter placed a news story on my desk. It appears that cement companies in the UAE have plenty of factories planned for the next few years. Next he’ll probably give me a piece on new factories for glass, marble, tiles, drywall, rebar and steel. The good old law of supply and demand seems to be solving the problem. I guess my idea isn’t so innovative after all.

Ramadan Mubarak!

Kathryn Semcow
Editor
kathryn.semcow@dvvmedia.com