This news summary is provided by Foley's Competitive Intelligence Team to inform business leaders of recent news and developments relevant to the Manufacturing Sector.
Analysis by Julie Dautermann, Competitive Intelligence Analyst
- The most recent article in Foley &
Lardner's Supply Chain Disruption Series provides an
overview of three key defenses to contractual
performance pertaining to force majeure, commercial
impracticability and frustration of purpose. Click here to subscribe to the series.
- The National Association of Manufacturers
released its Competing to Win policy roadmap addressing a
number of the "laws and regulations needed to strengthen the
manufacturing industry in the months and years ahead."
- Sustainability, maintaining resilient supply networks and
pursuing opportunities related to smart factories are among the
most urgent and important issues facing manufacturing companies in
the year ahead, according to the Manufacturing Leadership
Council's new 2022/2023 Critical Issues Agenda.
- Producer prices for final demand goods and
services increased 8.7% and consumer prices increased 8.3% on an unadjusted
basis for the 12 months ended in August 2022, according to data
released last week by the Bureau of Labor Statistics. Between July
and August, the Producer Price Index fell by 0.1%,
and the Consumer Price Index was up by 0.1%, on a
seasonally adjusted basis.
- Bain & Company's 2022 Technology Report includes analysis on sustainable packaging in consumer goods, the
outlook for the chip shortage, circular supply chains for hardware products and expanding implementation
capabilities related to the Industrial Internet of Things.
- The National Association of Manufacturers'
Q3 2022 Manufacturers' Outlook Survey
revealed 40.4% of respondents felt inflationary pressures
were worse today than six months ago, and 63.3% of
manufacturing leaders believe the U.S. economy will enter a
recession in 2022 or 2023. In addition, 75.6% of respondents were
somewhat or very positive about their company outlook, down from
82.6% in June and reflecting the lowest level since the fourth
quarter of 2020.
- A report from DHL and the NYU Stern School of
Business predicts global trade will grow
"slightly faster" in 2022 and 2023 than it did over the
previous decade. Vietnam, India and the
Philippines are identified as particular areas of
trade growth through 2026 as companies look to diversify
production and sourcing.
- The Wall Street Journal reports
Western supply chains could become less integrated with
China due to laws and proposals in the U.S. and Europe
which address products made using forced labor, as well as
commitments to increase domestic production. The article also
predicts the rapid globalization experienced in the last few
decades may "take a pause," but a full supply chain
decoupling from China remains unlikely.
- Railroads and labor unions reached tentative contract agreements last week, averting a potential strike which could have exacerbated supply chain constraints. According to an update from Law360, a number of the unions still need to vote to ratify the agreements.
- Shipments of industrial robots to China increased 45% in 2021, representing just under half of installations worldwide last year, according to data from the International Federation of Robotics excerpted in The Wall Street Journal. The IFR will release full-year 2021 industrial and service robot sales figures next month.
- Supply Chain Dive reports a number of
major steelmakers are reducing production in
response to falling demand, lower average selling prices and
elevated raw material costs.
- A recent survey of procurement decision-makers
across a range of industries found 68% of respondents view
suppliers as a source of differentiation, 66% collaborate with
suppliers to increase supply resilience, and 51% plan to
collaborate with more suppliers. In addition, 75% of respondents
include their suppliers in medium-term planning and 73% jointly
define and monitor improvement plans with suppliers. The study was conducted by Forrester Consulting on
behalf of spend management software provider Ivalua.
- Fashion and luxury supply chains should adapt to sourcing risks associated with geopolitical and climate uncertainties with actions including simplifying product portfolios, modernizing production systems and diversifying suppliers, according to analysis from Boston Consulting Group.
International Trade and National Security
- President Biden announced an executive order which provides
"formal Presidential direction" regarding potential
national security risks the Committee on Foreign
Investments should consider when reviewing
- The U.S. Department of Commerce may publish new regulations
affecting exports to China for certain types of
semiconductors and semiconductor
manufacturing equipment, according to unnamed sources in
- In support of efforts to strengthen domestic capabilities and reduce reliance on other nations, President Biden announced an executive order to help advance U.S. biotechnology and biomanufacturing innovation and production.
Sustainability and Product Stewardship
- The Biden administration announced the Federal Buy Clean Initiative will prioritize the purchase of construction materials such as steel, concrete, asphalt and glass containing lower levels of emissions associated with their "manufacturing, transportation, installation, maintenance and disposal."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.