Bermuda’s business community need to diversify their supply chains, a leading expert warned during the Bermuda Chamber of Commerce annual meeting.

Stefano Moritsch, a geopolitical expert and lead with KPMG, delivered a keynote address that painted a stark picture of the shifting global landscape.

He urged businesses to rethink their strategies as the world moves away from the predictable patterns of globalisation seen over the past 25 years.

The event, held at the Hamilton Princess & Beach Club, was themed “Fighting Together for a Stronger Economy”.

Businesses must now seek out “alternative supplies” in a more complex international trade environment, Mr Moritsch said.

He was particularly pointed about the geopolitical tensions driving these changes, noting that the world is experiencing a “watershed moment” with the end of American global supremacy.

“The ability of one single superpower to exercise enough leadership to bring the world together and coalesce around a set of mutually agreed upon rules, that ability is no longer there,” he argued. He said rising powers like China and revisionist states are challenging the existing international system.

He pointed out: “Strategically, what is going to be important for island nations like Bermuda is to ensure diversification of supply and ensure that you not put all your eggs in one basket.

“You can rely on the trade policy of the UK, as well. Again, it's about making the most of these changes, rather than just being reactive.”

With global trade becoming more transactional and protectionist, Mr Moritsch warned that businesses should expect greater complexity and higher costs. “At the macro level, it's causing a lot of inefficiencies, and things are becoming more expensive because we are duplicating supply chains,” he noted.

He also urged companies to stay calm and deliberate when making decisions in turbulent times.

“You don't really look to buy for a new house in the middle of a hurricane. You batten down the hatches first, assess the damage when you have certainty about what the impact is going to be and then you decide what to do next,” Mr Moritsch advised.