International Trade and the Supply Chain that Supports It Are Going to Grow

Its the beginning of 2022 and the supply chain looks like a lawn mower ran over it. Do not, however, bet against it or global trade.

 I say this because if you follow where the money is going, you see that investment dollars are pouring into companies servicing the global supply chain (shipping companies, ports, shipbuilders, etc.) are experiencing a robust investment environment. Despite or because of the 2021 supply chain mess, and continuing demand for consumer goods, shipping companies made a lot of money and expect to make more. As a result, they are investing their profits in building more and bigger ships and thousands of containers.

More impressive than investment in building ships and containers is the amount of money flowing into digital tools that will unlock efficiencies and untie supply chain knots. According to Wall Street Journal writer Jennifer Smith, in her article “Investors Are Piling Into Supply-Chain Technology:”

Big investment funds are pumping money into logistics technology at a rapid pace, driving up valuations for digital-focused ventures across freight, delivery and warehousing.

Many of the supply-chain technology companies drawing big investments are focused on tools for operations such as managing warehouses, matching freight loads to transportation capacity and mapping out cost-effective routes to move goods.

Investment money would not be flowing into digital and physical infrastructure unless those who have it didn’t believe in the future of foreign trade.

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