New technologies driving optimism in global trade
A recent survey conducted by Trade in Transition, a research project by the Economist Impact and DP World, has revealed that new technologies are a major source of optimism for executives in the global trade industry. The survey, which involved 3,500 executives from around the world, found that over 34% of respondents listed new technologies as a key driver of optimism over the next two years. Increased economic stability and growth came in second place, with 29.6% of respondents expressing optimism for these factors.
AI and automation transforming supply chain operations
The survey also highlighted the significant role that artificial intelligence (AI) and automation are playing in transforming supply chain operations. More than 98% of executives reported using AI in some part of their supply chain operations, with a third of businesses integrating AI to reduce operating costs and enhance resource and supply chain planning.
Businesses increasing investment in technology
In light of the positive impact that technology is having on global trade, the survey also revealed that businesses are increasing their investment in technology. According to the report, a third of respondents will focus on advanced automation and robotics for logistics efficiency, 28% will turn to blockchain for enhanced traceability and data security, and 21% will embrace AI, big-data analytics, and predictive analytics for real-time insights and disruption forecasting.
Geopolitical tensions shaping supply chain strategies
Despite the optimism surrounding new technologies, businesses are also facing challenges due to rising geopolitical tensions. The survey found that over a third of respondents are using a “friend-shoring” approach to building their supply chains, while 32% are dual sourcing or creating parallel supply chains to overcome geopolitical blockages. Additionally, 29% of businesses are seeking to use neutral markets. However, only 23% of executives expressed concerns about heightened geopolitical uncertainty, and 22% were concerned about challenges related to political instability in sourcing markets.
Governments and businesses must collaborate for future success
The survey results emphasize the need for collaboration between governments and businesses to ensure the future success of global trade. DP World Group Chairman and CEO, Sultan Ahmed bin Sulayem, highlighted the importance of governments providing predictability and reducing trade friction to maximize economic benefits. He also emphasized the need for collaboration in rolling out technological advancements, particularly in digitalization, automation, and AI, to enable greater efficiency, visibility, and adaptability in global trade.
The full report from Trade in Transition is available on The Economist Impact website, providing further insights into the challenges and opportunities facing the global trade industry.
Analyst comment
Positive news. New technologies driving optimism in global trade. Executives see AI and automation as key drivers for supply chain transformation. Businesses increasing investment in technology. Geopolitical tensions creating challenges, but collaboration between governments and businesses is crucial for future success in global trade. Analyst predicts increased efficiency, visibility, and adaptability in the market due to technological advancements.
