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Global Supply Chain Management Updates
As we ease into the long July 4th weekend, here are some management updates to consider.
Bullish forecast. Joel Prakken, co-head U.S. economics for IHS Markit, says the post-pandemic rebound in prices, exacerbated in sectors where demand is recovering faster than atrophied supply chains can accommodate, has proved stronger than expected. “In response, we have raised our forecasts of inflation for 2021 and 2022, from 2.6% and 1.7%, respectively, to 3.3% and 2.1%. However, as supply expands, we expect inflation in prices for core personal consumption expenditures to remain near 2% after 2021,” he says. According to Prakken, recent strong demand has combined with sharply falling inventories, which will add to growth as firms replenish inventories during the second half of the year. “We expect GDP to surpass its previous peak in the second quarter of this year and the output gap to be eliminated in 2022. “The potential economic impact depends on the final scope of the bill, and importantly, how much of the total is new spending,” he concludes.Get more news about Nmrv Supply Chain,you can vist our website!
Resilient assets. Cushman & Wakefield, a leading global real estate services firm, released its “2021 Global Logistics Outlook” last month. The report analyzes key drivers affecting growth, global leasing dynamics and provides a snapshot for the sector. “The unprecedented disruption caused by COVID-19 pandemic and changing consumer behaviors has reshaped the future of the logistics industry by exposing global supply chain vulnerabilities and accelerating technological advances. As a result, a variety of global trends have emerged, propelling the sector forward in new ways,” said Cushman & Wakefield’s Jason Tolliver, Investor Lead, Logistics & Industrial Services, Americas. The North American industrial market experienced growth despite the COVID-19 pandemic wreaking havoc across the globe, as well as more local disruptions including hurricanes and wildfires. It has proven once again to be one of the most resilient asset types.
Reshoring revisited. Thomas, a leader in product sourcing, supplier selection, and marketing solutions for industry, released its “2021 State of North American Manufacturing Annual Report” last month, sharing insights from its latest survey canvassing the North American manufacturing and industrial sectors. While the report reveals multiple shifts in domestic sourcing trends and supply chain demands, the key takeaway is the industry’s growing prioritization of reshoring in the aftermath of COVID-19 and the associated benefits of this shift for the U.S. economy. According to the survey, 83% of North American manufacturers are likely or extremely likely to reshore (up from 54% in March 2020). If these manufacturers with plans to reshore bring on just one single-contract domestic supplier, the shift would drive as much as $443 billion in U.S. economic value. “We are witnessing the wholesale reexamination of supply chain relationships, which will realign global manufacturing for decades to come,” said Tony Uphoff, Thomas president & CEO.
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