Latest news with #GEPGlobalSupplyChainVolatilityIndex
Cision Canada
4 days ago
- Business
- Cision Canada
U.S. FACTORY PURCHASES SLOWED SHARPLY IN JULY, DRIVING GLOBAL SUPPLY CHAIN SLOWDOWN: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
U.S. manufacturers slash purchases after front-loading inventories during the 'tariff pause' Asia factories slow, driven by Japan, South Korea and Taiwan manufacturers Europe's fragile recovery stalled in July as German growth weakened ahead of tariff agreements CLARK, N.J., Aug. 13, 2025 /CNW/ -- Global supply chain activity fell in July as U.S. manufacturers sharply tapered purchases of materials and components after building inventories in June ahead of the end of the 'tariff pause,' according to the GEP Global Supply Chain Volatility Index, a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The index dropped to -0.35 from -0.17 in June, signaling increased spare capacity worldwide. The U.S. was the main driver, with North America's index falling to -0.33 from -0.06. The reversal follows a surge in June when U.S. factories front-loaded orders to beat anticipated tariff changes. In July, U.S. manufacturers sharply tapered purchases of inputs — materials, components and commodities — signaling expectations of slowing demand going forward. "When we remove companies' front-loading inventories and rerouting goods to avoid tariffs, the underlying picture points to slowing manufacturing demand worldwide," said John Piatek, vice president, consulting, GEP. "The July data shows a clear pullback in orders, with U.S. manufacturers preparing for lower demand going forward." REGIONAL KEY FINDINGS Asian factory purchasing activity remains slightly below trend due to growing weakness in Japan and South Korea. Data was mostly collected prior to these two countries striking double-digit tariff agreements with the U.S. Taiwanese factories also saw an accelerated downturn, weighing on the broader region. Notably, after declining in the two previous months, China's factory buying volumes rose in July. Europe industrial recovery slipped: Its index dropped to -0.30 from 0.01. Germany's rebound slowed, highlighting the fragile nature of the continent's industrial recovery. U.K.: Index declined to -0.58, from -0.41, signaling that the U.K.'s supply chains continue to experience an elevated level of spare capacity. Interpreting the data: Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are. Index < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are. CATEGORY KEY FINDINGS INVENTORIES: Safety stockpiling eased, indicating limited concern over supply bottlenecks or price surges. LABOR & TRANSPORTATION: Staffing capacity and transportation costs were stable, with no signs of inflationary pressure from these sources. For more information, visit Note: Full historical data dating back to January 2005 is available for subscription. Please contact [email protected]. The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Sep. 11, 2025. About the GEP Global Supply Chain Volatility Index The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global. A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized. A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here. About GEP GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 1,000 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit About S&P Global S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world. We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today. Media Contacts
Yahoo
13-05-2025
- Business
- Yahoo
TARIFFS BITE: NORTH AMERICAN AND ASIAN MANUFACTURERS RETRENCH IN APRIL, WITH GLOBAL MATERIAL PURCHASES DOWN AT ACCELERATED PACE: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
The steep fall in global manufacturers' purchases signals a likely production slowdown in the near future North America factories respond to tariffs by buying less inputs and aggressively stockpiling Purchasing activity by Asian manufacturers at its weakest since Dec. 2023 as demand slumps across the region's key exporting hubs Bright spot: Europe's industrial recession is finally coming to an end as spare capacity shrinks further CLARK, N.J., May 13, 2025 /PRNewswire/ -- GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses — indicated an accelerated reduction in global manufacturers' demand for inputs (raw materials, components and commodities) in April, signaling a broad-based contraction in purchasing activity by region. April's drop in buying across global manufacturers was the sharpest of 2025 to date—specifically in North America and to a lesser extent Asia—as manufacturers scale back in anticipation of weakening future demand as a direct result of tariffs. "The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged." said John Piatek, vice president, consulting GEP. REGIONAL SUPPLY CHAIN VOLATILITY: NORTH AMERICAN MANUFACTURERS RAISE SAFETY STOCK TO BLUNT TARIFFS NEAR-TERM IMPACT North American manufacturers sharply increased inventory buffers in April, warehousing front-loaded Q1 purchases in response to rising tariff concerns and a renewed focus on supply chain resilience. SPARE CAPACITY RISES ACROSS ASIA Spare capacity across Asian supply chains increased significantly in April as factory slowdowns were evident in many of the region's major markets, led by China, Taiwan and South Korea. In Europe, there were further signs that the continent's industrial downturn was cooling. Supply chain capacity went underutilized to the smallest degree in ten months, reflecting growth in Germany and France, though risks remain if global trade conditions worsen. The U.K. once again recorded significant manufacturing weakness, with supplier activity down at a rate which has rarely been surpassed in 20 years of data availability. Interpreting the data:Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are. For more information, visit Note: Full historical data dating back to January 2005 is available for subscription. Please contact economics@ The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Jun. 11, 2025. About the GEP Global Supply Chain Volatility Index The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global. A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized. A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here. About GEP GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit About S&P Global S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. Media ContactsDerek CreeveyEmail: Director, Public Relations Joe Hayes GEP Principal EconomistPhone: +1 646-276-4579 S&P Global Market IntelligenceEmail: Phone: +44-1344-328-099 View original content: SOURCE GEP
Cision Canada
13-05-2025
- Business
- Cision Canada
TARIFFS BITE: NORTH AMERICAN AND ASIAN MANUFACTURERS RETRENCH IN APRIL, WITH GLOBAL MATERIAL PURCHASES DOWN AT ACCELERATED PACE: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
The steep fall in global manufacturers' purchases signals a likely production slowdown in the near future North America factories respond to tariffs by buying less inputs and aggressively stockpiling Purchasing activity by Asian manufacturers at its weakest since Dec. 2023 as demand slumps across the region's key exporting hubs Bright spot: Europe's industrial recession is finally coming to an end as spare capacity shrinks further CLARK, N.J., May 13, 2025 /CNW/ -- GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses — indicated an accelerated reduction in global manufacturers' demand for inputs (raw materials, components and commodities) in April, signaling a broad-based contraction in purchasing activity by region. April's drop in buying across global manufacturers was the sharpest of 2025 to date—specifically in North America and to a lesser extent Asia—as manufacturers scale back in anticipation of weakening future demand as a direct result of tariffs. "The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged." said John Piatek, vice president, consulting GEP. NORTH AMERICAN MANUFACTURERS RAISE SAFETY STOCK TO BLUNT TARIFFS NEAR-TERM IMPACT North American manufacturers sharply increased inventory buffers in April, warehousing front-loaded Q1 purchases in response to rising tariff concerns and a renewed focus on supply chain resilience. SPARE CAPACITY RISES ACROSS ASIA Spare capacity across Asian supply chains increased significantly in April as factory slowdowns were evident in many of the region's major markets, led by China, Taiwan and South Korea. In Europe, there were further signs that the continent's industrial downturn was cooling. Supply chain capacity went underutilized to the smallest degree in ten months, reflecting growth in Germany and France, though risks remain if global trade conditions worsen. The U.K. once again recorded significant manufacturing weakness, with supplier activity down at a rate which has rarely been surpassed in 20 years of data availability. Interpreting the data: Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are. Index < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are. For more information, visit Note: Full historical data dating back to January 2005 is available for subscription. Please contact [email protected]. The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Jun. 11, 2025. About the GEP Global Supply Chain Volatility Index The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global. A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized. A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here. About GEP GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. SOURCE GEP
Yahoo
13-05-2025
- Business
- Yahoo
TARIFFS BITE: NORTH AMERICAN AND ASIAN MANUFACTURERS RETRENCH IN APRIL, WITH GLOBAL MATERIAL PURCHASES DOWN AT ACCELERATED PACE: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
The steep fall in global manufacturers' purchases signals a likely production slowdown in the near future North America factories respond to tariffs by buying less inputs and aggressively stockpiling Purchasing activity by Asian manufacturers at its weakest since Dec. 2023 as demand slumps across the region's key exporting hubs Bright spot: Europe's industrial recession is finally coming to an end as spare capacity shrinks further CLARK, N.J., May 13, 2025 /CNW/ -- GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses — indicated an accelerated reduction in global manufacturers' demand for inputs (raw materials, components and commodities) in April, signaling a broad-based contraction in purchasing activity by region. April's drop in buying across global manufacturers was the sharpest of 2025 to date—specifically in North America and to a lesser extent Asia—as manufacturers scale back in anticipation of weakening future demand as a direct result of tariffs. "The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged." said John Piatek, vice president, consulting GEP. REGIONAL SUPPLY CHAIN VOLATILITY: NORTH AMERICAN MANUFACTURERS RAISE SAFETY STOCK TO BLUNT TARIFFS NEAR-TERM IMPACT North American manufacturers sharply increased inventory buffers in April, warehousing front-loaded Q1 purchases in response to rising tariff concerns and a renewed focus on supply chain resilience. SPARE CAPACITY RISES ACROSS ASIA Spare capacity across Asian supply chains increased significantly in April as factory slowdowns were evident in many of the region's major markets, led by China, Taiwan and South Korea. In Europe, there were further signs that the continent's industrial downturn was cooling. Supply chain capacity went underutilized to the smallest degree in ten months, reflecting growth in Germany and France, though risks remain if global trade conditions worsen. The U.K. once again recorded significant manufacturing weakness, with supplier activity down at a rate which has rarely been surpassed in 20 years of data availability. Interpreting the data:Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are. For more information, visit Note: Full historical data dating back to January 2005 is available for subscription. Please contact economics@ The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Jun. 11, 2025. About the GEP Global Supply Chain Volatility Index The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global. A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized. A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here. About GEP GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit About S&P Global S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. Media ContactsDerek CreeveyEmail: Director, Public Relations Joe Hayes GEP Principal EconomistPhone: +1 646-276-4579 S&P Global Market IntelligenceEmail: Phone: +44-1344-328-099 View original content to download multimedia: SOURCE GEP View original content to download multimedia: Sign in to access your portfolio
CNBC
13-05-2025
- Business
- CNBC
U.S.-China trade war pushed global supply chain near breaking point, new data shows
The trade truce reached between the U.S. and China arrived just as President Donald Trump's tariffs took a big bite out of North American & Asian manufacturing, with a steep retreat in April purchasing activity after the rush to hoard supply, according to the GEP Global Supply Chain Volatility Index. "The pause on tariffs is a major relief for manufacturers in both the U.S. and China," said John Piatek, vice president of consulting for GEP. "Our Supply Chain Volatility Index shows manufacturing demand in China is dropping steeply, and U.S. manufacturers are aggressively stockpiling key inputs to buffer against tariffs." But according to Piatek, the trade deal won't quickly quiet U.S. manufacturers' anxiety about how to reduce risks related to China for the long-term. "As they maneuver to de-risk and limit exposure to China, the rapidly changing landscape and uncertainty is clouding manufacturers' outlook and dampening their capital investment and supply chain," he said. The GEP Global Supply Chain Volatility Index tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. "The first blows of the tariff war have landed on global manufacturers," Piatek said. The supply chain volatility data should serve as a warning about what would come next if the temporary pause in tariffs by the U.S. and China aren't extended permanently after the 90-day pause and the trade war re-escalates. The data showed a "hockey stick"-like upturn in April, according to Piatek, with North American companies aggressively stockpiling inventory at what he described as a "concerning rate." At the same time, "the first signs of manufacturers anticipating slower demand and supply shortages have emerged," he said. Purchasing activity by manufacturers in Asia was at its weakest since December 2023. One bright spot to offset pull back in manufacturing is Europe, where an industrial recession is coming to an end. The U.K., the first nation to sign a preliminary trade deal with the U.S., recorded significant manufacturing weakness, with supplier activity down to a rate near a record low based on the past two decades of data. But supply chain capacity in Germany and France, which was underutilized over the past year, is reflecting growth. Piatek cautioned that this could reverse if global trade conditions worsen. The GEP data also shows an increase in spare capacity across Asian supply chains in April, led by China, Taiwan and South Korea. Stephen Edwards, CEO of the Port of Virginia, told CNBC in an interview published this week that if the supply chain future is less China and more Southeast Asia, South Asia and Europe, the U.S. port is positioned for that growth. "Our fastest growth over the last four years has been the Indian subcontinent, then Vietnam, then Europe," said Edwards. Trade from China has been flat for the last four years at Port of Virginia. "It is our second-largest trading bloc after the European Union. So it's still a big block," he said. "But if that is going to migrate over time, whatever the new trade environment is, there's an opportunity. We have not yet seen the trade agreements, but we believe that it's going to be less China and more from Southeast Asia and Europe. I think we're in a pretty good spot," Edwards said.
