Supply Chain Management
Predictions for 2025: Christian Skilich, Chief Pulp and Technology Officer at Lenzing
2024 was a volatile year for industries and organisations, with geopolitical uncertainty, extreme weather events and the ongoing aftermath of the pandemic disrupting operations.
As we look forward to 2025, it’s clear that these trends will continue to drive ambiguity and force organisations to reprioritise their business and talent strategies.
I recently spoke to Christian Skilich, Chief Pulp and Technology Officer at Lenzing, to hear his reflections on the performance, challenges and opportunities industrial organisations faced, as well as his predictions for market and talent trends in 2025.
What are your reflections on the trends, challenges and opportunities that appeared in 2024?
Reflecting on the trends that emerged in 2024, it’s clear that the industry was heavily impacted by the ongoing recession in many countries. This economic environment placed significant cost pressure on the sector, driven largely by inflation and rising labour costs. These challenges were compounded by the need to adjust to the ongoing financial strain, which meant that many businesses had to focus on reducing costs rather than expanding operations. Building on the lessons from 2023 and the pandemic, many organisations entered 2024 with a strong emphasis on restructuring and optimising the cost base. Talent management became a focal point in this process, with organisations shifting their focus away from hiring new talent to providing internal employees with opportunities for growth and development. As part of this strategy, talent growth was paused in 2024, making significant cuts to this cost element.
From a leadership perspective, 2024 highlighted a key lesson: the markets are less predictable than ever before. This unpredictability underscored the importance of adaptability and agility in leadership. Leaders were required to quickly adjust to external circumstances, responding to the shifting demands of the market.
"The ability to remain flexible and responsive to changing conditions has become a crucial skill for leaders in the pulp industry moving forward."
What trends do you predict will emerge across your industry in 2025?
Looking ahead to 2025, the industry faces continued challenges, with many countries, particularly in the Western Hemisphere, as well as China and Thailand, experiencing a decline in consumer confidence. Consumers are increasingly worried about global uncertainties, leading to reduced spending and a greater focus on improving cash positions in anticipation of a more uncertain future. Cost management will remain a central focus, with more emphasis placed on reducing expenses rather than investing in growth.
Additionally, concerns about potential trade policies under the upcoming Trump administration are rising. Customers are particularly focused on the possibility of new barriers to trade with China and other Asian countries, as well as South America. Any such changes in trade relations could impact the cost of certain goods, further constraining consumer spending. Businesses will need to stay alert and adapt quickly to any policy shifts as they unfold.
To navigate these turbulent times, organisations will need to diversify their offerings, both in terms of products and geographic reach. By expanding their portfolios and reducing dependency on a single market or region, companies can better weather the uncertainty of the coming years. Flexibility and innovation will be key to surviving and thriving in a more volatile and cost-conscious global environment.
How do you predict that talent and skills will transform this year to adapt to the changes the emerging trends will bring?
As we look to 2025, talent and skills will need to transform to adapt to the emerging trends and changes within the industry. One of the key opportunities will be the need for an exchange of talent—bringing in individuals from outside the organisation with the right skills to enable quicker, more agile, and more efficient decision-making processes. Companies will be looking for professionals who can adapt quickly to evolving market conditions and contribute to faster strategic pivots.
Particularly in procurement, supply chain and operational excellence (OEX) functions, we can expect to see a greater emphasis on building more robust teams. These areas will need professionals who not only have deep technical knowledge but also possess the ability to drive change, manage transformations, and improve organisational resilience. As businesses focus on restructuring and adapting to a more uncertain environment, there will be a demand for individuals who can support these efforts in a secure and sustainable way.
Furthermore, roles focused on change management, transformation and driving resilience will become more prominent.
"As companies face ongoing challenges, the ability to manage and lead through change will be critical, requiring professionals who can lead transformational initiatives and foster agility throughout the organisation."
This shift will lead to an increased need for more transformational roles that focus on long-term sustainability and adaptability, ensuring that businesses are better equipped to thrive amidst uncertainty.
How will geopolitical uncertainties impact your industry in 2025?
Geopolitical uncertainties, particularly the ongoing conflict between Russia and Ukraine, are expected to have a significant impact on various industries in 2025. A potential ceasefire agreement between Russia and Ukraine could mark a turning point, but it would also present a major challenge for industries, especially those with ties to the region. A key factor will be the extensive rebuilding and repair efforts needed in Ukraine, particularly in the industrial sector. Many of the country’s industrial complexes have been severely damaged, and the process of refurbishing these facilities will require substantial investment and time.
This reconstruction effort could serve as a trigger for several industries, potentially creating new opportunities as companies look to rebuild and modernise operations. However, it will also introduce challenges, particularly in terms of supply chain disruptions and the need for skilled labour and materials to support the restoration process. In addition, any shifts in political relations or trade policies in response to the conflict could further complicate the industry landscape, affecting everything from market access to cost structures.
As such, businesses operating in or around the affected regions will need to closely monitor the evolving situation and adapt their strategies accordingly, ensuring they are prepared for both the opportunities and risks that arise from the geopolitical uncertainties of 2025.
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I’d like to extend thanks to Christian for sharing his reflections on last year, as well as his insights and predictions for 2025. If you have any questions or would like a conversation about your organisation’s hiring strategy for the new year, please don’t hesitate to get in touch.
