Cooperation as a competitive edge: Thriving in a VUCA world

The industrial world faces a $94 trillion infrastructure gap by 2040, along with mounting pressure to decarbonize and navigate unprecedented technological disruption. Global supply chain disruptions have surged by nearly 40% and volatility shows no signs of easing in 2026 - procurement, manufacturing and warehousing challenges are becoming almost universal.

Industrial leaders now operate in what has been termed a 'VUCA' world - volatile, uncertain, complex and ambiguous. They must balance growth, resilience and competitiveness, while accelerating innovation. As risks intensify and complexity deepens, one question defines the future: in a world this unpredictable, can any company thrive alone?

Technology is a powerful enabler, but not enough on its own. The differentiator? Strategic cooperation, partnerships across borders, sectors and ecosystems to secure resources, share risk and scale solutions responsibly. In this era of converging challenges and opportunities, collaboration isn’t optional; it’s the ultimate competitive advantage.

The urgency for cooperation has never been greater. Consider the forces shaping our industries:

Global supply chains remain vulnerable, with nine in ten executives reporting supply chain challenges this year. Full re-localization could shrink global GDP by 5%, underscoring the need for collaborative strategies that balance resilience with economic viability.

Energy production drives 80% of global CO₂ emissions and industry is a major contributor. Renewables are forecast to supply 46% of global electricity by 2030, yet grid bottlenecks threaten progress. Accelerating electrification and modernizing grids demands cooperation among governments, utilities and technology providers.

In manufacturing and heavy industry, downtime can cost up to $2.3 million per hour. Predictive maintenance powered by AI can boost productivity by 25%, cut breakdowns by up to 50% and reduce maintenance costs by up to 30%. Yet, many systems remain locked in rigid, hardware-dependent automation, costing mid-sized manufacturers 7.5% of annual revenue and large enterprises $45 million each year. Open, interoperable architectures are key to unlocking agility, resilience and sustainable growth, but they require trust, standardization and cybersecurity.

There are several forms of cooperation driving impact, but three models stand out:

Innovation thrives in ecosystems. By connecting startups, technology providers and industrial players, we accelerate the development and deployment of solutions, from AI-driven optimization to digital twins that bridge IT and OT.

Real-world collaborations bring this to life: China’s Net-Zero Ordos-Envision Industrial Park unites 46 companies to optimize renewable energy and carbon management through advanced digital platforms. Zero Carbon Humber in the UK connects energy firms, heavy industry and tech partners to scale hydrogen and carbon capture. India’s Green Industrial Clusters Initiative brings together industrial hubs, technology providers and public institutions to deploy green hydrogen and carbon capture, accelerating decarbonization across five major regions. These ecosystems demonstrate how shared innovation accelerates resilience and sustainable transformation.

Resilient supply chains depend on transparency and shared intelligence. Collaborative platforms that exchange data on inventory, logistics and risk indicators enable proactive responses to disruptions. Alibaba and DHL, for example, partnered to integrate IoT-enabled shipment tracking and automated customs compliance across Asia-Pacific, reducing cross-border delivery delays and ensuring faster, more reliable fulfilment for millions of e-commerce customers. Similarly, Data4Industry-X, launched by Dawex, Schneider Electric, Valeo, CEA and Prosyst, is creating a trusted data exchange ecosystem for the industrial sector. A European-led initiative aligned with Gaia-X and the international Manufacturing-X framework, it is enabling secure, standardized sharing of operational and supply chain data, accelerating innovation and resilience across manufacturing and heavy industry.

Governments and businesses share a common goal: sustainable growth. Public–private partnerships can unlock funding, create regulatory frameworks and accelerate the adoption of technologies that reduce emissions and enhance competitiveness. The Accelerating Resilient Infrastructure Initiative in the United States, for example, led by 20+ partners including Schneider Electric and Microsoft, is mobilizing $7.5 billion in financing for microgrids, solar projects and EV infrastructure, helping communities build cleaner, more resilient energy systems.

Technology is the backbone of this collaborative future. Electrification, automation and digital platforms are reshaping industries, enabling efficiency and sustainability at scale. But these technologies cannot deliver their full potential without cooperation.

Success also depends on people and leadership. Industries face an ageing workforce and a looming talent gap, with a predicted shortage of 85 million skilled workers by 2030. Cooperation must extend to education, training and inclusive workforce strategies. Upskilling and reskilling are critical to ensure that digital and sustainable transformation is powered by human capability as much as technological innovation. Overlaying this is the need to attract new talent to the market. The manufacturing and industrial sectors face a critical challenge: engaging younger generations who often perceive these fields as outdated or lacking innovation.

Gen Z is motivated by purpose and wants to make a meaningful impact on the world, yet many do not currently associate industry careers with opportunities to drive positive change. At the same time, their interest in advanced technologies, such as AI and robotics, aligns clearly with the future of industry.

To bridge this gap, businesses, educators and policymakers need to collaborate on creating pathways that highlight how modern industry combines cutting-edge technology with sustainability and societal impact. By reframing the narrative, we can inspire the next generation to see industry as a future-ready career choice that matters.

The message for leaders at the Annual Meeting in Davos is clear: cooperation is not optional, it is existential. In a VUCA world, competitive advantage will belong to those who embrace collaboration as a core strategic pillar.

Here’s what that means in practice:

No single company or government can solve these challenges alone. By working together - across borders, sectors and ecosystems - we can turn volatility into opportunity and complexity into competitive strength.

The world is watching. The time to act is now.