U.S. manufacturing sector regaining momentum, rising COVID-19 threatens recovery; CBI reports record drop in UK manufacturing as total orders dip; Economic Recoveries in U.S., Europe Take Diverging Paths; The Future Of Manufacturing: What Executives Are Saying.
U.S. Manufacturing Sector Regaining Momentum, Rising COVID-19 Threatens Recovery
The improvement in manufacturing reported by the Commerce Department on Monday was driven by pent-up demand following the reopening of businesses.
The budding recovery is threatened by a resurgence in new cases of the coronavirus, which has forced some authorities in the hard-hit South and West regions to either close businesses again or halt reopenings.
Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, jumped 3.3% last month, the Commerce Department said. That was the biggest increase in these so-called core capital goods orders since July 2018 and followed a 1.6% rise in May.
CBI Reports Record Drop in UK Manufacturing as Total Orders Dip
Hopes of a rebound in manufacturing output in the three months to July have been dashed by figures from the Confederation of British Industry that showed production volumes declined at a record pace and total orders fell at their fastest rate since October 1980.
There were signs in the survey responses of improved levels of confidence among manufacturers, the CBI said. The quarterly business optimism balance recovered from -87 in April to -1 in July – which is about the average level seen in the 2010s.
Source: The Guardian.
Economic Recoveries in U.S., Europe Take Diverging Paths
European countries could be benefiting from strict lockdowns pursued in spring and policies regarding mask-wearing, social distancing, large gatherings.
The U.S. economy lagged in July and Europe’s bounced back, according to fresh surveys of purchasing managers, evidence that the two economic powerhouses are recovering at different speeds from the coronavirus pandemic.
Source: The Wall Street Journal.
The Future Of Manufacturing: What Executives Are Saying
- Diversify Concentrated Supply Chains
Re-examining supply chains and their weak points is another way to reduce the risk of disruptions as much as possible.
- Balance Risk Mitigation With Capacity Management
Manufacturers are looking to achieve a balance of risk mitigation and capacity management. One tactic to manage costs that will come with diversifying supply chains is through digital transformation projects.
- Think Differently About Upskilling And Labor Sourcing
The talent segment of the supply chain has been a continual challenge for some manufacturers. But now that many manufacturers have adapted and continue to refine remote working, they’re able to think differently about sourcing labor.