US manufacturing industry stabilizes after plunging to financial-crisis lows, ISM survey reveals; UK manufacturing shows a hint of recovery after coronavirus; Pandemic exposes Europe’s reliance on imports.
US manufacturing industry stabilizes after plunging to financial-crisis lows, ISM survey reveals
- The US manufacturing industry ended a four-month decline and began to stabilize in May, the Institute for Supply Management’s latest survey showed Monday.
- The ISM’s purchasing managers’ index ticked higher to 43.1 last month from 41.5, remaining in contraction territory but climbing off an 11-year low.
Source: Business Insider.
UK manufacturing shows a hint of recovery after coronavirus
Britain’s manufacturing sector has shown signs of recovering from the worst damage inflicted during the coronavirus outbreak after a survey showed that factory output had declined at a slower pace in May than a month earlier.
The manufacturing purchasing managers’ index (PMI) – compiled from surveys of business activity – rose to 40.7 in May from 32.6 a month earlier, when harsh restrictions brought Britain’s economy to an effective standstill.
Source: The Guardian.
Pandemic exposes Europe’s reliance on imports
The pandemic and economic shutdowns laid bare Europe’s reliance on imports, particularly from China and most starkly in medical products. European governments have been unable to depend on their normal supplies of protective equipment, ventilators, some generic drugs, and the basic ingredients that go into more sophisticated pharmaceuticals. Cue calls for the return of production to European plants.
Source: Financial Times.
Manufacturing. What will happen in the years after
Today’s situation is unique – a global business shutdown for several months has never happened before.
We can expect significant changes in business, manifesting in the acceleration of trends, disruption in relations, vertical integration, and local sourcing.
To prepare for these changes companies need to secure uninterrupted business and increase efficiency. These obvious goals will now have some new objectives:
- Worker safety will go beyond gloves
- Work with suppliers will require more attention.
- Margins will be put under huge pressure.
Source: The Manufacturer.