State of the VITA Technology Industry Reports

Economic conditions are still rattling around and the companies with weak business models are failing. That includes the electric vehicle (EV) market. Artificial Intelligence (AI) has displaced all the other technologies in the news. We are seeing AI taking over segments in the entertainment industry and spreading across many military platforms. High interest rates and slow GDP growth has put a damper on M&A activity. And there are some new doomsday scenarios you need to know about.

World economic conditions are wobbling. Europe’s primary export now is new laws against tech companies and corporations. Their primary import is money from fines for violating those new laws. The EV disaster continues to get worse. There are four slow-motion train wrecks underway that are worth watching. AI’s primary target seems to be the entertainment industry. The war in Ukraine takes a back seat to the Israel-Hamas war in the Middle East as world military spending surges. When you start to think that things cannot get any worse, they get worse.

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Inflation is still high throughout the world, but GDP is still growing. Interest rates are rising again, to get things under control. That’s killing small banks and they are starting to fail regularly. The EV (electrical vehicle) is creating problems for the automakers, except Tesla, and some are starting to dump employees. There’s a new diet coming from Europe that you need to try. And we look at the military markets from a different perspective. So, things are getting vague and uncertain again.

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From COVID-19 to Monkeypox and then to polio; that is the new medical reality. From lockdowns and negative GDP growth under COVID-19, to inflation, energy shortages, high interest rates, factory lockdowns, lower world GDP, and layoffs; that is the economic picture. From Russia invading Ukraine to Ukraine invading Russia (if they choose to take back Crimea); that is the military situation. I said things did not look good going forward in the last white paper. And I was right. So, it is time to make you aware of silicon-based extraterrestrial life here on earth.

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Russia’s invasion of Ukraine threatens the economic recovery from the COVID-19 lockdowns. But COVID-19 is still with us in a different form now and seems to be driving the Canadian authorities crazy. Analysis of Russia’s military capabilities and weapons used in Ukraine are feeding into Pentagon plans for new weapons, systems, tactics, and strategies. Looking at all the problems with EVs (electric vehicles) is getting boring, so let’s look at Web 3.0 and the Metaverse. A couple of nascent interconnect standards might filter down to our markets, so we need to be aware of what they do. The semiconductor supply chain is still a mess, and it might get worse in some industry segments. It looks like we're just moving from one crisis to another.

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World GDP is recovering from the COVID-19 pandemic lockdowns, except in Europe. There are many new proposed taxes in the developed nations, to find the money to inject into their economies to enhance growth. The COVID-19 Delta variant, inflation, and supply chain disruptions are threatening growth everywhere in the next few quarters. So, things are still uncertain. That’s leading to a lot of anxiety, but happiness only occurs in short bursts and is very overrated anyway. That’s what we’ll explore in this report.

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We live in interesting times. We are moving from a petroleum-powered world to an electricity-powered world. We are moving from a labor-powered manufacturing model to a robotic-powered manufacturing model. We are moving from human-powered decision making to artificial intelligence-powered decision making. We are moving from broadcast-powered news and entertainment (push) to streaming-powered news and entertainment (pull). We are moving from classroom-powered learning to online-powered learning. We are moving from mall-powered shopping to online-powered shopping. Most of these changes are being driven by technology, but COVID-19 is the new catalyst accelerating these changes.

At the same time, we are experiencing a massive collision between economics, politics, data, technology, federal laws, and state’s rights as a new administration comes into office. So, let us look at whose ox will be gored in the coming months and why!

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COVID-19 is still with us, and now it is the cold and flu season. Schools have been opening for in-person classes and then returning to on-line classes within weeks as campus COVID cases spike. The economy has been improving, but certain segments (airlines, hotels, restaurants, theme parks, cruise lines, retail, etc.) have run out of money and are starting layoffs. Oil prices remain depressed and 36 small oil producers have filed for bankruptcy since January. Amazing technologies are being tested by the U.S. Army and the U.S. Air Force together, while the U.S. Navy seems preoccupied with their recent accidents and internal management problems. On top of all that, it is an election year. So, let us look at what has happened in the last few months and see why it feels like we are living in the “Twilight Zone."

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The world auto industry is being destroyed by Greta Thunberg, technology, world economic conditions, and the coronavirus. The commercial aircraft business is being destroyed by bad engineering, graft and corruption, and the coronavirus. Europeans are trying to figure-out what to build instead of automobiles as that industry declines. Tanks and warships and warplanes look promising. EU authorities are scrambling for something else to tax now that England is gone from the Union. Turkey has entered the wars in Iraq, Syria, and Libya while Iran is being attacked by UFOs. I’m not making this stuff up!

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VITA releases the fall edition of the 2019 State of the VITA Technology Industry report.

Things have been rattling around for the past six months, on the economic, geopolitical, technical, and military fronts. Economic activity has slowed worldwide, China and the U.S. are in a trade war, many governments are being replaced in Europe, the Iranians have become more daring, new memory technologies are coming to market, and it looks like Greenland could become the 51st state if the price is right. Additionally, technology is changing military doctrine and how we fight wars. The future is looking bumpy as we go forward, so tighten your seat belt.

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