This is your weekly supply chain bulletin from B2BE for the week starting 6th February 2023.
Each week, we bring you a rundown of the latest trends in the news from across the supply chain industry. We cover the issues most important to you, bringing you useful links to the full articles. This ranges from news on various supply chain disruptions to strategies to lessen the damage. We also include other relevant supply chain related updates. If you missed it, you can read last week’s supply chain bulletin here. Read on to see what’s making the news this week.
Apple posts revenue fall for the first time in 3 years, is the supply chain to blame?
Revenue decreases for any company can be attributed to a variety of factors, including supply chain issues. In Apple’s case, the recent revenue fall could have been influenced by supply chain disruptions, as the underperformance highlights Apple’s dependence on China for manufacturing and came after shipments of its high-end iPhones were hit by an outbreak of Covid-19 at an assembly hub run by partner Foxconn in Zhengzhou.
Challenges continue as China suffer from low aluminium production
China’s aluminum production has decreased, leading to further supply chain challenges in the industry. The decrease in production is due to stricter environmental regulations and the closure of smaller, outdated aluminum plants. This has resulted in tighter supplies and higher prices for aluminum, causing disruptions in the global aluminum supply chain. The situation highlights the importance of sustainable and responsible production practices in maintaining a stable supply chain and avoiding potential future supply chain disruptions.
UK MPs slam government for neglecting critical semiconductor supply chain
Members of Parliament (MPs) have criticised the UK government for its failure to secure the semiconductor supply chain. The MPs argue that the lack of action by the government has left the UK at risk of shortages and disruptions in the semiconductor industry, which is crucial for many industries including technology, automotive, and defense. They call for the government to take immediate action to address the issue and secure the UK’s supply of semiconductors to ensure the country’s competitiveness in the global market. The MPs’ comments highlight the importance of ensuring a stable and secure supply chain in strategic industries to prevent future economic and technological setbacks.
Manufacturing industry outlook brightens
The Purchasing Managers’ Index (PMI), the Institute for Supply Management (ISM) and S&P Global’s outlook for manufacturing in January suggest a positive outlook for the industry. The PMI and ISM reports showed a growth in manufacturing activity, with the PMI reaching its highest level in over two years. The S&P Global report also predicted growth in the manufacturing sector, driven by a rebound in consumer spending and increasing demand for goods. These reports indicate that the manufacturing industry is recovering and the outlook for the future is positive. As a result, this could lead to improved supply chain performance and increased economic growth.
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