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2022 Forecast: Supply Chains Become Critical Infrastructure

ToolsGroup

Let’s kick off 2022 with a little thought experiment… What’s a problem affecting every nation on earth? All this led to global supply chain disruptions and inventory build-ups, wrong inventory mixes, and supply chain shortages in 2022. Image source: New York Times. One that isn’t climate change.

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July 2022 Global Manufacturing Indices Indicating Declining Momentum

Supply Chain Matters

The July 2022 J.P. Also highlighted was that purchasing activity, stocks of purchases and finished goods inventories collectively rose in July. The July 2022 Manufacturing ISM© Report on Business reported the lowest PMI value since June 2020. Germany and Italy values were noted as being 25-month lows. slipping 2.3

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This Could Be Scary: A Halloween Candy Shortage

Enterra Insights

When you boil it down, a product’s shelf life is very short and if you don’t sell it, that inventory will be discounted shrinking already razor thin margins. 1] Mehr Bedi, “ Hershey warns of Halloween candy shortage ,” Reuters, 28 July 2022. [2] The cost of over forecasting is severe. ”[6]. Footnotes. [1]

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Supply Chain Matters News Capsule Follow-Up September 9 2022

Supply Chain Matters

The report, citing two informed sources, specifically indicates that between 30 percent and 50 percent of Foxconn’s and Jabil’s planned production output in August were affected by electrical power rationing. This week, Russia again cutoff the major natural gas pipeline to European countries including Germany. All rights reserved. .

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September and Q3 2022 Global Manufacturing Indices Enter Contraction Trending

Supply Chain Matters

The September 2022 J.P. The orders-to-inventory ratio fell to another multi-year low last month as excess capacity continued to build at factories. Of particular concern, the New Orders sub-index declined more than 4 points, reaching a contraction value in September while the Inventories sub-index was 2.6 in September from a 51.7

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August 2022 Global Manufacturing Indices- Declining Momentum Accelerating

Supply Chain Matters

In our summary and perspectives focused on July 2022 reporting , we opined that July data reinforced a trending toward declining global supply chain production momentum. The August 2022 J.P. The August 2022 Manufacturing ISM© Report on Business reported an August value of 52.8, Global Wide Production Activity.

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Ease the Burden of Labor Shortages and Increase Supply Chain Resiliency 

Logility

Roughly 25% of workers plan to change jobs in 2022. The labor supply is shrinking in Germany, Poland, Russia, and Japan, and contraction is expected to quicken. Solving the labor crunch also means exploring new sources of supply. Transition programs for prisoners and veterans’ programs can be good sources of labor.