Recession talk. Trade wars. Presidential elections. Nagging uncertainty. 2020 is looking to to be an interesting year indeed. While prognosticators continue to harp on the slowing economy and the tense political landscape, not all is lost. Here are five things to watch for in global trade for 2020.
- WTO lowers trade forecast. Back in October, the World Trade Organization (WTO) “sharply downgraded” their 2019 trade growth forecasts from 2.6% to 1.2%. In 2020, however, trade volume growth is expected to accelerate to 2.7%. Resolving trade conflicts can only help improve these numbers, so all eyes continue to be on the international marketplace.
- Regionalization. As the global economy continues to slow, companies are adjusting by “going local”. Breaking down larger, more complex supply chains into smaller regional locations continues to be a trend, keeping costs at bay and allowing for better visibility and improved response to market changes.
- Asia will grow. Yes, it’s true that the U.S. and China continue to clash, and China’s economy is slowing. However, India continues to be the fastest-growing major economy. To add to that, Asia is still leading the world in economic integration, making them more stable and resilient than other players in the game.
- Technology continues to expand. In this era of disruption, it should be no surprise that technology will continue to grow. Artificial intelligence, virtual reality and the internet of things (IoT) are all challenging businesses to rethink how they run their operations. In order to surpass the competition, you must implement emerging tools.
Zirks neatly fits into this category by disrupting the existing importing process (see what we did there?). Through our real-time, self-serve online platform, distributors and supply chain managers are able to discover the Holy Grail of importing: reducing lead times without increasing costs.
Take control of your import lead times and pricing in 2020.