We would like to alert our Ferrari Consulting and Research Group clients and our Supply Chain Matters readership that our Q2 2016 Newsletter published on Thursday of last week and should be in the email inboxes of those who have subscribed. With July being a popular vacation period, we noted a fair amount of out-of-office notices during the initial distribution.
Our latest newsletter reinforces important trends brought forward by developments this past quarter.
Global manufacturing and supply chain activity as recorded by the JP Morgan Global Manufacturing PMI index reflected some stability but otherwise continued uncertainty and a continued trending toward global contraction. Among Developed Regions, there were signs of modest rebound both in the United States and the Eurozone, however there were setbacks for Japan that continues to trend downward. After our newsletter published, GDP in the United States was reported to be a disappointing 1.2 percent in the second quarter, well below what economists were expecting. Activity was fueled primarily by consumer spending, but lack business investment and spending continues to drag. Meanwhile the European Central Bank reported that the Eurozone economy slowed in Q2, sliding to an annualized rate of 1.2 percent, down from 2.2 percent in Q2. Weak demand is attributed to declines in European based exports among large developed countries along with political and terrorist concerns.
Emerging Regions reflected some signs of rebound from prior supply chain moderation. India, Vietnam and Indonesia indices are on the rebound, while Mexico is now trending unexpectantly downward. There was again continued decline accross China.
Among other Newsletter articles for Q2:
- Strategic Investments in Organic and Sustainable Food Supply Chains- a mid-year check relative to our prediction of the multi-year investment realities and timetables required for transition to accommodate growing consumer requests hor healthier food.
- Industry and Global Supply Chain Impacts of Brexit- a reiteration of the most stunning and unexpected global event in Q2, one that will likely provide industry and global supply chain implications over the next 2-5 years.
- The State of U.S. Logistics– a reiteration of the main themes and takeaways from the 27th Annual State of Logistics Report published by CSCMP and A.T. Kearney.
- A Case Study on Shortsighted Supplier Management– we highlight a comprehensive and well-written report published by Bloomberg Businessweek regarding Takata airbag inflator product deficiencies and recall campaigns with extraordinary insights on lack of supplier monitoring and management. While the supplier was always confident that it had engineered and produced safe inflators, test data and events were contrary.
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Thanks again for your continued readership.
Bob Ferrari, Founder and Executive Editor