Rhode Island can punch above its weight in the global economy in two ways, according to experts at this week’s 40th Global Trade Summit at Bryant University: by staying a step ahead of rapid changes in trade caused by AI and building resiliency against supply chain disruptions in an increasingly turbulent world.
Here are a few takeaways from summit keynotes and panelists on the future of trade regionally and beyond:
AI could empower reshoring, small businesses
Logic CEO Michael Santora delivered an insightful look at the ways in which AI is driving change in supply chain operations as well as a broader preview of how artificial intelligence could reshape the world in the next decade.
During his morning keynote address on the future of supply chain automation, Santora predicted:
- Robotics and AI-driven efficiencies could lead to “reshoring” of work like the processing of Rhode Island calamari, which currently is frozen, shipped to Asia to be processed, then sent back to the U.S.
- “Friend shoring” will increase so that no single shock can shut down the entire supply chain system.
- Autonomous vehicles and automated systems will be able to locate, pick up, and move products — “like Uber for goods,” said Santoro — making inventory mobile, reducing the need for warehousing, and allowing manufacturers to product the exact amount of goods needed. “Technology will allow small manufacturers to take control of their own supply chains,” he said. We’re changing from a linear supply chain to a network.”
"We’re changing from a linear supply chain to a network.”
Resiliency planning means more than diversification
Building resiliency into supply chain operations “is about diversifying but also how much you’re held back by your own systems’ ability to integrate with external systems,” said Eric Johnson, senior technology editor at the Journal of Commerce, during a panel discussion on trade, technology, and tariffs moderated by Bryant Marketing Professor Michael Gravier, Ph.D.
Noting that few experts predicted the global impact of the COVID-19 pandemic, Johnson said it’s important “not to focus on a single type of disruption but build a company that can respond to multiple things.”
Fellow panelist William Duclos, supply chain manager at Amphenol, agreed.
“We’re no longer just looking at if the weather is going to be bad” but at things like trade policies, tariffs, and wars, he said. “We’re modeling not only the movement and flow of materials but also the next changes and how those may affect us.”
AI has boosted trade, but debt, too
Success in balancing resilience and growth will drive the evolution of global trade, said Brendan LaCerda, an associate director and senior economist with Moody's Analytics, in a discussion with Bryant Vice President of Strategy and Partnerships Edinaldo Tebaldi, Ph.D. But data suggest that global trade has been resilient even in the face of multiple disruptions during this decade.
AI investment has surged, boosting total trade levels even as other global commerce has flattened, said LaCerda, pointing out that the U.S. now imports more data servers from Mexico than cars and auto parts. Among the biggest threats to continued prosperity: inflation, rising interest rates, and especially debt.
“The world is awash in debt,” and it’s not just countries like the U.S. doing the borrowing, he said. “Prior to this decade, U.S. tech companies were sitting on a mountain of cash,” he said; now, they’re borrowing heavily to fund rapid AI development.
Dime-sized device demonstrates life-saving benefits of globalization
A medical device that monitors CO2 levels in the blood of babies born prematurely illustrates not just how globalized trade is in the 21st century, but the impact it has on real people, said Bob Cormier, CEO and president of the Rhode Island Life Sciences Hub.
The device was designed in Switzerland and includes components from Asia, the U.S., Germany, Hungary, and elsewhere. Technical support is provided by a company in Lincoln, Rhode Island.
“Nobody ever turns over a bottle of a pharmacy counter to see where that product came from, but I can promise you that every single item that touches us in health care has come from multiple countries,” said Cormier. No country has a monopoly on expertise, he added, and medical devices require a global marketplace to cover the costs of research and development.
“Nobody ever turns over a bottle of a pharmacy counter to see where that product came from, but I can promise you that every single item that touches us in health care has come from multiple countries."
For many patients, keeping supply chains free and open can literally be a matter of life or death. Life sciences “are a value chain from idea to bedside,” Cormier said.
Planning for the ‘AI growth slope’
“The organizations realizing the most value aren't chasing AI for the sake of AI,” said Kevin Ricci, a partner at Citrin Cooperman Advisors and co-leader of the firm's cybersecurity practice, during a panel discussion on AI moderated by Todd Alessandri, Ph.D., dean of the Bryant College of Business. “They’re applying it to specific business problems and improving customer experiences and increasing operational efficiencies.”
“Start with a problem that you need to solve, and then AI might be part of the solution,” agreed panelist George Westerman, a senior lecturer at the MIT Sloan School of Management and founder of the Global Opportunity Forum. Westerman added that navigating the “AI growth slope” includes identifying problems that can be solved now by AI and others that may be solvable in the future.
“Start with a problem that you need to solve, and then AI might be part of the solution."
“There's a lot of capability you need to build. There's a lot of risk that you need to overcome,” he said.
Trade war drives Canadian infrastructure investments
Canada has responded to the Trump administration’s trade war by investing half a trillion dollars in critical infrastructure projects intended to improve the efficiency of its supply chains, even as it seeks to maintain a productive relationship with the U.S., said Bernadette Jordan, Consul General of Canada for New England, during a session focused on Rhode Island’s most valuable trading partner.
“Given the various upheavals that we've seen, Canada has responded by building our own resilience, and by looking at investment and diversification,” she said.
To achieve success, planning supercedes motivation
In international trade as in sports, leadership means setting a path, setting milestones, and owning your decisions and progress so nothing is left to chance, said afternoon keynote speaker Monica Sattler ’08, a competitive volleyball player, adventure racer, cyclist, and motivational speaker.
“Motivation is sneaky because it never shows up when you need it the most. It's not very reliable,” she said. “So what should you rely on to keep going, especially with your ambitious goals? [Create] systems, structures, and routines that are so strong that you're doing it anyway, no matter how you feel.”