Where to look in a World of Global Procurement Opportunities?
Global trade was severely impacted early in the pandemic, and recovery was slow for many of the traditional global export leaders. However, dynamic markets in Asia and other developing parts of the world experienced a faster recovery, most of them seeing growth in their year-on-year exports in 2021. This trend continued in 2022, as more markets continued to grow their exports despite the many challenges in the current global sourcing environment. It is imperative that global sourcing managers observe the opportunity that these dynamic markets present, as they continue to increase their production capacity and exports of increasingly high-value products. Over the short to medium term, diversification planning (‘local’ vs ‘global’), recession risks (supplier health impact), and sustainability (ESG goals) present important additional considerations that must be incorporated in planning.
Shift in Global Export Rankings – New Winners, Losers, and some Holding Ground: Since 1990, the global top 30 exporter rankings have changed significantly. Economic growth within emerging markets, with special impetus given to export growth, have led to their rise in manufacturing and export rankings. In addition, there has been a strong link between deepening global interconnectivity, the rise of free trade agreements, and an increase in trade by new countries on the world stage. However, increasing global demand as well as strong export growth, led to an overall rebound in trade and commerce in the last two years. What will the new landscape look like?
China, several high-income economies, and new challengers from developing countries are the winners in global exports; there are also several losers