Manufacturing Today - January/February 2017 - 17

MICHAEL ADEBISI | COLUMN BY

Michael Adebisi, director of NewTime Consulting. Ltd., has
more than 15 years' experience in investment banking, financial services, and consulting. For more information, please contact mike@
newtimeconsult.com.

JANUARY/FEBRUARY 2017 manufacturing-today.com

17

P RO F I TA B I L I T Y

L AST PAGE

C OVER STORY

M ANAGEMENT

S U P P LY C H A I N

E MPLOYEES

D IALOGUE

C ONTENTS

The stakes are high. Human lives and
the economic growth to sustain those
lives need infrastructure in both
developing and developed nations
worldwide. For that very reason, international infrastructure project initiatives are fraught with peril for both
borrowers and lenders: Desperation
is not anyone's friend.
Caveat Emptor - Let the buyer
(borrower) beware. When the things
we take for granted in most (but not
all) of the established markets in the
world - clean water, food, sanitation,
housing - are missing, desperate
countries and companies can make

T ECHNOLOGY

Find a Way to Transcend

the wrong decisions. Result: they take
loans with strings attached, unfriendly terms, ridiculous interest rates.
Caveat Venditor - Let the seller
(lender) beware. Lending money has
its risks. An under-researched finance
project with a seemingly attractive return on pensioners' dollars may end
poorly. Even the more laudable prospect of helping - doing something,
anything - to fix the world's problems
may result in lost principal.
The Public Private Partnership
(PPP) model offers a solution that
may help close the gap. Benefits and
risks apply, but it should be noted
that the most important of all is the
need for people/entities in both the
public and private sectors to understand the physical and figurative
landscape through which they will
be building the project.
The answer involves breaking down
silos, understanding risks, providing
communication, and being open to
the untried (e.g., advanced fintech
services that may include cloud computing, big data, machine learning
solutions) to solve the world's problems. Countries might need their
leaders to disengage their egos to repair and maintain broken infrastructure rather than build glamorous,
legacy projects. Someone must find a
way to transcend the type of political
unrest that discourages longer-term
investment possibilities. In general
our best minds will need to invent a
functioning, single market financial
infrastructure to close the traditional
infrastructure's funding gap. It might
be yet one more call for tearing down
to build up to a new and better way. mt

N EWS

A ERODEF MANUFACTURING 2017

AH
S R EXPO 2017

M A N U FA C T U R I N G

C ANADA MANUFACTURING

L E A N

- Taking all of the risks into consideration from the previous steps, players
must work diligently to manage all the
moving parts before, during and after
the project.
7. Become an expert in PPPs (Public Private Partnerships), including
knowledge of the process, benefits
and legal framework. Ever since the
worldwide financial crisis of 2008,
governments have looked to private
financing to meet their infrastructure
funding needs. Benefits of private enterprise are offset by potential risks.
Meanwhile, "... the PPP model has
proven to be successful: they subsequently [since 2008] increased to $79
billion per year during FY07-11. PPPs
have now spread across the globe: 134
developing countries implemented
new PPP projects in infrastructure
between 2002 and 2011."
8. Identify, evaluate and monitor
risks. Although this step looks repetitive, stressing the need for a
continuing analysis of risk to investors (lenders), country decision
makers (borrowers), and analysts
(market entry strategists) cannot
be overstated.

F ABTECH

SERVICE

SPACE TECH EXPO

elsewhere may be undone by a contract that is not studied carefully by
lawyers who are trained to read these
documents. These attorneys should
be familiar not only with international law but also be vigilantly multilingual - meaning they would want more
than a simple speaking and reading
knowledge of the native language.
They need to attend to the nuances of
engineering, political, legal and social
language interpretation down to the
dialect levels within countries. There
are seven main dialects of the Chinese
language with many more sub-dialects. There are by some counts over
3,000 languages spoken natively
in Africa, which are divided into six
major language families. Adding engineering, manufacturing, materials
and other jargon (in which words
don't always translate directly) to
these variables only compounds the
issue. Meanwhile, desperation risk
takes over when parties are too anxious to make a deal. A country might
need the infrastructure item very badly, or the investor groups need a place
to park their money - and desire overtakes caution.
5. Optimize existing value chain
finance tools including the US Export-Import Bank,
USAID's
Development Credit Authority
and more - This step requires intimate knowledge of available financial tools including some of the
newer financial vehicles offered by
global fintech entrepreneurs, which
are disrupting the status quo across
project finance as well as many other practices worldwide.
6. Create a system of checks and balances to manage stakeholders, access bankability of projects, review
payment mechanisms, identify and
monitor performance standards
and establish termination clauses


http://www.manufacturing-today.com

Table of Contents for the Digital Edition of Manufacturing Today - January/February 2017

Table Of Contents
Manufacturing Today - January/February 2017 - Cover1
Manufacturing Today - January/February 2017 - Cover2
Manufacturing Today - January/February 2017 - 1
Manufacturing Today - January/February 2017 - Table Of Contents
Manufacturing Today - January/February 2017 - 3
Manufacturing Today - January/February 2017 - 4
Manufacturing Today - January/February 2017 - 5
Manufacturing Today - January/February 2017 - 6
Manufacturing Today - January/February 2017 - 7
Manufacturing Today - January/February 2017 - 8
Manufacturing Today - January/February 2017 - 9
Manufacturing Today - January/February 2017 - 10
Manufacturing Today - January/February 2017 - 11
Manufacturing Today - January/February 2017 - 12
Manufacturing Today - January/February 2017 - 13
Manufacturing Today - January/February 2017 - 14
Manufacturing Today - January/February 2017 - 15
Manufacturing Today - January/February 2017 - 16
Manufacturing Today - January/February 2017 - 17
Manufacturing Today - January/February 2017 - 18
Manufacturing Today - January/February 2017 - 19
Manufacturing Today - January/February 2017 - 20
Manufacturing Today - January/February 2017 - 21
Manufacturing Today - January/February 2017 - 22
Manufacturing Today - January/February 2017 - 23
Manufacturing Today - January/February 2017 - 24
Manufacturing Today - January/February 2017 - 25
Manufacturing Today - January/February 2017 - 26
Manufacturing Today - January/February 2017 - 27
Manufacturing Today - January/February 2017 - 28
Manufacturing Today - January/February 2017 - 29
Manufacturing Today - January/February 2017 - 30
Manufacturing Today - January/February 2017 - 31
Manufacturing Today - January/February 2017 - 32
Manufacturing Today - January/February 2017 - 33
Manufacturing Today - January/February 2017 - 34
Manufacturing Today - January/February 2017 - 35
Manufacturing Today - January/February 2017 - 36
Manufacturing Today - January/February 2017 - 37
Manufacturing Today - January/February 2017 - 38
Manufacturing Today - January/February 2017 - 39
Manufacturing Today - January/February 2017 - 40
Manufacturing Today - January/February 2017 - 41
Manufacturing Today - January/February 2017 - 42
Manufacturing Today - January/February 2017 - 43
Manufacturing Today - January/February 2017 - 44
Manufacturing Today - January/February 2017 - 45
Manufacturing Today - January/February 2017 - 46
Manufacturing Today - January/February 2017 - 47
Manufacturing Today - January/February 2017 - 48
Manufacturing Today - January/February 2017 - 49
Manufacturing Today - January/February 2017 - 50
Manufacturing Today - January/February 2017 - 51
Manufacturing Today - January/February 2017 - 52
Manufacturing Today - January/February 2017 - 53
Manufacturing Today - January/February 2017 - 54
Manufacturing Today - January/February 2017 - 55
Manufacturing Today - January/February 2017 - 56
Manufacturing Today - January/February 2017 - 57
Manufacturing Today - January/February 2017 - 58
Manufacturing Today - January/February 2017 - 59
Manufacturing Today - January/February 2017 - 60
Manufacturing Today - January/February 2017 - 61
Manufacturing Today - January/February 2017 - 62
Manufacturing Today - January/February 2017 - 63
Manufacturing Today - January/February 2017 - 64
Manufacturing Today - January/February 2017 - 65
Manufacturing Today - January/February 2017 - 66
Manufacturing Today - January/February 2017 - 67
Manufacturing Today - January/February 2017 - 68
Manufacturing Today - January/February 2017 - 69
Manufacturing Today - January/February 2017 - 70
Manufacturing Today - January/February 2017 - 71
Manufacturing Today - January/February 2017 - 72
Manufacturing Today - January/February 2017 - 73
Manufacturing Today - January/February 2017 - 74
Manufacturing Today - January/February 2017 - 75
Manufacturing Today - January/February 2017 - 76
Manufacturing Today - January/February 2017 - 77
Manufacturing Today - January/February 2017 - 78
Manufacturing Today - January/February 2017 - 79
Manufacturing Today - January/February 2017 - 80
Manufacturing Today - January/February 2017 - 81
Manufacturing Today - January/February 2017 - 82
Manufacturing Today - January/February 2017 - 83
Manufacturing Today - January/February 2017 - 84
Manufacturing Today - January/February 2017 - 85
Manufacturing Today - January/February 2017 - 86
Manufacturing Today - January/February 2017 - 87
Manufacturing Today - January/February 2017 - 88
Manufacturing Today - January/February 2017 - 89
Manufacturing Today - January/February 2017 - 90
Manufacturing Today - January/February 2017 - 91
Manufacturing Today - January/February 2017 - 92
Manufacturing Today - January/February 2017 - 93
Manufacturing Today - January/February 2017 - 94
Manufacturing Today - January/February 2017 - 95
Manufacturing Today - January/February 2017 - 96
Manufacturing Today - January/February 2017 - 97
Manufacturing Today - January/February 2017 - 98
Manufacturing Today - January/February 2017 - 99
Manufacturing Today - January/February 2017 - 100
Manufacturing Today - January/February 2017 - 101
Manufacturing Today - January/February 2017 - 102
Manufacturing Today - January/February 2017 - 103
Manufacturing Today - January/February 2017 - 104
Manufacturing Today - January/February 2017 - 105
Manufacturing Today - January/February 2017 - 106
Manufacturing Today - January/February 2017 - 107
Manufacturing Today - January/February 2017 - 108
Manufacturing Today - January/February 2017 - 109
Manufacturing Today - January/February 2017 - 110
Manufacturing Today - January/February 2017 - 111
Manufacturing Today - January/February 2017 - 112
Manufacturing Today - January/February 2017 - 113
Manufacturing Today - January/February 2017 - 114
Manufacturing Today - January/February 2017 - 115
Manufacturing Today - January/February 2017 - 116
Manufacturing Today - January/February 2017 - 117
Manufacturing Today - January/February 2017 - 118
Manufacturing Today - January/February 2017 - 119
Manufacturing Today - January/February 2017 - 120
Manufacturing Today - January/February 2017 - 121
Manufacturing Today - January/February 2017 - 122
Manufacturing Today - January/February 2017 - 123
Manufacturing Today - January/February 2017 - 124
Manufacturing Today - January/February 2017 - 125
Manufacturing Today - January/February 2017 - 126
Manufacturing Today - January/February 2017 - 127
Manufacturing Today - January/February 2017 - 128
Manufacturing Today - January/February 2017 - 129
Manufacturing Today - January/February 2017 - 130
Manufacturing Today - January/February 2017 - 131
Manufacturing Today - January/February 2017 - 132
Manufacturing Today - January/February 2017 - 133
Manufacturing Today - January/February 2017 - 134
Manufacturing Today - January/February 2017 - 135
Manufacturing Today - January/February 2017 - 136
Manufacturing Today - January/February 2017 - Cover3
Manufacturing Today - January/February 2017 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6b
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5b
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_4a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_3
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_3a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_2A
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_1
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_1a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_6
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_5
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_3
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_1
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20171112
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201709
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201709_v2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201708
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201707
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170506
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170304
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170102
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20161112
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160910v2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160910
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160102
http://www.nxtbook.com/nxtbooks/phoenix/mt_20151112
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150910
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150102
http://www.nxtbook.com/nxtbooks/phoenix/mt_20141112
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140910
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140102
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013summer_vol1
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012winter
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012fall
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012summer
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012spring
http://www.nxtbook.com/nxtbooks/phoenix/mt_2011winter
http://www.nxtbook.com/nxtbooks/phoenix/mt_2011fall
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011summer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011springsummer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011spring
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010fall
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010summer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010spring
http://www.nxtbook.com/nxtbooks/schofield/mt_2010winter
http://www.nxtbook.com/nxtbooks/schofield/mt_2009fall
http://www.nxtbookMEDIA.com