North American Businesses Optimistic About 2024, Banking on Technology and Agile Trade
Despite facing geopolitical uncertainties, North American businesses are showcasing optimism for the year 2024, driven by their belief in technology’s potential to enhance supply chain efficiency and resilience alongside agile trade strategies. Economist Impact and DP World conducted a study that discovered this positive sentiment among businesses in North America.
The fourth annual Trade in Transition report, led by researchers at Economist Impact and commissioned by DP World, gathered insights from over 3,500 executives globally. The study focused on private sector perspectives on international trade and supply chains.
The findings revealed that one-third of North American business leaders identified technology as the primary source of their optimism regarding the future of global trade. Emphasizing the importance of advancements in supply chain efficacy and resilience, these leaders foresee positive transformations in the coming years.
In pursuit of enhanced efficiency, traceability, security, and data protection, North American businesses are planning to integrate advanced automation, augmented or virtual reality, 3D printing, and blockchain technology. Additionally, a staggering 97% of executives are leveraging artificial intelligence (AI) to revolutionize various aspects of their supply chain operations, effectively addressing concerns such as inventory management and trade expenses.
To manage risks effectively, businesses are streamlining their supply chains. The report highlights the increasing trend of nearshoring, establishing parallel supply chains, and expanding into neutral markets. Furthermore, companies are restructuring their supply chains by collaborating with fewer suppliers, a strategy that has seen a significant uptick of 160% compared to the previous year’s report.
The survey respondents emphasized the importance of these measures in addressing the challenges that businesses anticipate in 2024. These challenges include difficulties related to high transport expenses impacting exporting and importing (26%), shortages of vital production inputs (22%), concerns about rising inflation and economic unpredictability (27%), and uncertainties regarding tariffs for both exports and imports (20% and 21% respectively).
Brian Enright, CEO & Managing Director of DP World Americas, acknowledges the cautious nature of businesses due to ongoing economic pressures and heightened geopolitical tensions. He expresses belief in the potential of technology integration and agile supply chain strategies to reshape global trade dynamics, rendering supply chains more efficient, resilient, and adaptable.
Businesses are riding the wave of optimism driven by technological advancements and a strategic focus on supply chain transformation. The integration of cutting-edge technologies and the adoption of agile trade strategies position North American businesses to navigate the challenges that lie ahead in 2024. With a discerning eye on geopolitical events, these businesses are poised to reshape the realms of international trade and supply chains, capitalizing on the potential of technology to streamline operations and drive growth.
This article is based on a report by Economist Impact and DP World, highlighting the optimism prevailing among North American businesses for 2024. The report emphasizes the role of technology and agile trade strategies in driving this optimism and enhancing supply chain efficiency. The findings reflect the sentiments of over 3,500 executives surveyed globally, offering insights into private sector perspectives on international trade and supply chains.
