Factory Supply – Coach Outlet Online S Pick http://coachoutletonlinespick.org/ Thu, 07 Oct 2021 08:24:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://coachoutletonlinespick.org/wp-content/uploads/2021/09/coach-oultlet-online-s-pick-icon-150x150.jpg Factory Supply – Coach Outlet Online S Pick http://coachoutletonlinespick.org/ 32 32 Japanese, US business leaders call for improved supply chains https://coachoutletonlinespick.org/japanese-us-business-leaders-call-for-improved-supply-chains/ https://coachoutletonlinespick.org/japanese-us-business-leaders-call-for-improved-supply-chains/#respond Thu, 07 Oct 2021 06:56:31 +0000 https://coachoutletonlinespick.org/japanese-us-business-leaders-call-for-improved-supply-chains/ Japanese and US business leaders agreed on Thursday that supply chains for essentials need to be further diversified among like-minded countries as the coronavirus pandemic has exposed vulnerabilities. After two days of talks, the business councils of the two countries said cooperation among allies, as well as between the public and private sectors, is needed […]]]>

Japanese and US business leaders agreed on Thursday that supply chains for essentials need to be further diversified among like-minded countries as the coronavirus pandemic has exposed vulnerabilities.

After two days of talks, the business councils of the two countries said cooperation among allies, as well as between the public and private sectors, is needed to build “resilient and reliable” supply chains and mitigate losses. risks for businesses.

The pandemic has exposed vulnerabilities in supply chains for a range of products from semiconductors to COVID-19 vaccines. The global chip tightening and parts shortages due to plant closures in Southeast Asia have clouded prospects for a sustained economic recovery led by manufacturers.

The councils said in a joint statement that “relocation”, or bringing production back home, is “neither realistic nor desirable,” adding that the key to building strong supply chains is their diversification between. different nations, especially like-minded ones.

The leaders also called on the governments of Japan and the United States to support corporate efforts to tackle human rights abuses, including forced labor, in global supply chains, an issue which has gained attention amid concerns about human rights conditions in the Muslim Uyghur community. minority in the Xinjiang region, in the far west of China.

The Japanese and US governments are seeking to deepen their cooperation to strengthen supply chains for critical products such as computer chips and batteries. The move comes amid growing rivalry between the United States and China as they vie for technological superiority.

Business leaders urged their governments to promote and adhere to “high level” trade agreements such as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership.

China and Taiwan are both seeking to join the 2018 free trade pact without the United States, which withdrew as President Donald Trump prioritized bilateral deals. Japan is a member of the 11-nation framework.

About 60 business leaders from Japan and the United States discussed various topics, including managing the impact of the pandemic on decarbonization, at the virtual meeting hosted by the Japan-US Business Council and the US-Japan Business Council.

They said vaccination certificates were essential to a swift resumption of cross-border travel and urged the two countries to create a roadmap for the “step-by-step” lifting of entry restrictions.

“We encourage governments to remove barriers to private sector collaboration by facilitating a globally consistent regulatory framework for international travel that establishes common standards and reciprocal relaxation of science-based entry restrictions, such as recognition of accepted vaccination documents issued in the other country, ”the statement says.

Regarding decarbonization, a key theme that will affect companies in the years to come, the councils welcomed the two commitments made by their governments to achieve carbon neutrality.

Climate targets set by governments should be “attainable, sustainable” and developed in close coordination with the private sector, the statement said.

Business leaders called for clarifying policies to achieve the desired energy mix so that companies can boost investment in innovative technologies.

Japan and the United States both aim to reduce carbon dioxide emissions – which are responsible for global warming – and achieve carbon neutrality by 2050.

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Toy makers rush to put products on shelves amid supply caps https://coachoutletonlinespick.org/toy-makers-rush-to-put-products-on-shelves-amid-supply-caps/ https://coachoutletonlinespick.org/toy-makers-rush-to-put-products-on-shelves-amid-supply-caps/#respond Wed, 06 Oct 2021 14:51:30 +0000 https://coachoutletonlinespick.org/toy-makers-rush-to-put-products-on-shelves-amid-supply-caps/ NEW YORK (AP) – Three months before Christmas, toy company Basic Fun has made an unprecedented decision to leave a third of its iconic Tonka Mighty dump trucks destined for U.S. store shelves in China. Why? With soaring prices for shipping containers and clogs in the supply network, the transportation costs to get the bulky […]]]>

NEW YORK (AP) – Three months before Christmas, toy company Basic Fun has made an unprecedented decision to leave a third of its iconic Tonka Mighty dump trucks destined for U.S. store shelves in China.

Why? With soaring prices for shipping containers and clogs in the supply network, the transportation costs to get the bulky yellow toy on U.S. soil are now 40% of the retail price, or about $ 26. This is significantly up from 7% a year ago. And that doesn’t even include the cost of getting the product from US ports to retailers.

“We never gave up on the product this way,” says Jay Foreman, CEO of Basic Fun. “We really had no choice.

Toy companies are rushing to get their products to retailers as they grapple with a severe supply network crisis that could mean sparse shelves for the crucial holidays. They are trying to find containers to ship their goods while looking for alternative ports. Some are stealing in some of the toys instead of shipping them by boat to ensure delivery by December 25th. And in cases like Basic Fun, they leave some toys in China and wait for the costs to drop.

Like all manufacturers, toy companies have faced supply chain issues since the start of the pandemic and the temporary closure of factories in China in early 2020. Then, US stores have temporarily cut back or halt production amid the closures. The situation has only worsened since the spring, with companies struggling to meet the growing demand for all kinds of products from reintroduced buyers around the world.

Manufacturers are struggling with bottlenecks at key factories and ports like Long Beach, California – and everything in between. In addition, labor shortages in the United States made it difficult to unload goods from ships and trucks.

But for toy makers who rely heavily on holiday sales, there’s a lot at stake for the nearly $ 33 billion US industry. The fourth quarter represents 70% of its annual turnover. On average, vacation sales represent 20% of the entire retail industry. And 85% of toys are made in China, says Steve Pasierb, CEO of The Toy Association.

The growls are so bad that some retailers are telling companies they don’t want products if they ship after mid-October. That’s because products that typically took four to six weeks from leaving a factory in China to landing in a U.S. distribution center now take 12 to 16 weeks, says toy consultant Marc Rosenberg.

The hardships come as the U.S. toy industry saw an almost 17% increase in sales last year and a 40% increase in the first half of this year, with parents looking to entertain their children at home. , according to NPD Group, a market research company. .

But while analysts expect strong growth in 2021, many toy companies have said they will see sales decline as they will not be able to meet orders for hot items, especially surprise hits. . They also incur significant costs that will force some toy companies to close their doors.

Toy officials say they can’t increase prices by more than 10%, although that won’t fully cover the higher costs as they worry about the reaction of buyers. Mattel Inc., the nation’s largest toy company, warned this summer it would raise prices in time for the holiday season to offset higher shipping costs, but did not specify by how much.

Container costs on ships have more than six-fold from last year, with some brand executives saying they jumped from around $ 3,000 a year ago to $ 20,000. This has forced large retailers like Walmart and Target, among others, to charter their own ships.

Foreman calculates that 1,800 Tonka trucks can be fitted to each 40-foot container. So at $ 20,000 per container, it costs him $ 11 each. This is up from an average of $ 1.75 each in a typical year. He says he’s focused on shipping smaller items like Mash’ems – soft, spongy, water-filled collectibles – in containers as he seeks to maximize the total value of the container. and profit margins. He estimates he can put $ 150,000 worth of Mash-ems in a container for $ 40,000 worth of Tonka trucks.

Some, like MGA Entertainment, the LOL doll maker, are speeding up the theft of their toys because they now cost roughly the same shipment.

Jim Silver, editor of TTPM, a toy review site, says big discounters like Target and Walmart should have a healthier supply of toys compared to smaller ones because of their influence. Target says it has partnered closely with its suppliers and transportation partners to keep stores well stocked and ready for its customers.

But Melissa McCollum, owner of Learning Express Toys in Birmingham, Alabama, says she only received 25% of the holiday toys in mid-September; typically this figure is 50%. And The Toy Book, the leading trade magazine serving the toy industry, promotes an organized list of in-stock products that retailers can quickly get from U.S. warehouses.

Many toy companies like Basic Fun and PlayMonster have cut back on advertising.

“We would be advertising on empty shelves,” said Tim Kilpin, president of PlayMonster, who says 15-20% of his holiday products are nibbled down the supply chain. Koosh, a toy ball made from rubber filaments, ran out completely in August, and there’s no way it’ll be replenished by Christmas, he says.

Bottlenecks are expected to have lingering consequences. Toymakers are facing pressure from retailers to ship the first flow of holiday 2022 products in early March instead of late April and the second cycle in June instead of late July, said Andrew Yanofsky, head of marketing and sales. operations at WowWee.

This will force companies to make decisions about how much to manufacture and revamp without having a full picture of sales data, he says.

Yanofsky said he initially placed a big bet on Got2Glow Fairy Finder, a jar light show that allows kids to find virtual fairies because he knew he wouldn’t be able to piece production together. held grunts.

“We took a risk on the excess material beyond the scope of what we thought we could sell,” he said.

Even the few toy companies that make goods in the United States have experienced labor shortages.

John Gessert is CEO and President of American Plastic Toys, based in Walled Lake, Michigan with another factory in Mississippi. He says the company misses 35% to 40% of its frontline employees. Now it’s focusing more on play kitchens that require six workers and more towards less labor-intensive toys like basketball sets, which only require three workers to assemble.

“I have never had such a complicated puzzle to solve. “he said.

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Four strategies to increase the productivity of labor and equipment in the manufacturing sector https://coachoutletonlinespick.org/four-strategies-to-increase-the-productivity-of-labor-and-equipment-in-the-manufacturing-sector/ https://coachoutletonlinespick.org/four-strategies-to-increase-the-productivity-of-labor-and-equipment-in-the-manufacturing-sector/#respond Wed, 06 Oct 2021 01:00:20 +0000 https://coachoutletonlinespick.org/four-strategies-to-increase-the-productivity-of-labor-and-equipment-in-the-manufacturing-sector/ Image credit: SYSPRO. Manufacturing in the 21st century is becoming more competitive than ever with ever tighter margins. Companies in this industry must now take a close look at their efficiency and productivity and re-evaluate the use of known technologies and consider newer, relatively untested technologies to introduce competitive advantage into their organizations. Manufacturers need […]]]>

Image credit: SYSPRO.

Manufacturing in the 21st century is becoming more competitive than ever with ever tighter margins. Companies in this industry must now take a close look at their efficiency and productivity and re-evaluate the use of known technologies and consider newer, relatively untested technologies to introduce competitive advantage into their organizations.

Manufacturers need to completely reinvent the way to meet customer demands and expectations by transforming core business operations. Significant changes are happening in the traditional workshop, making it faster, more automated and more connected. Some manufacturers have realized that building the digital backbone necessary for their business will achieve new levels of productivity that will drive growth and profitability, but how do they do it?

Four ways to improve plant productivity

Creating a digitally connected smart factory gives manufacturers the ability to simultaneously monitor and analyze multiple factory variables, including the performance of machines, people, and processes. This allows them to find previously undetected issues and identify strategies for making improvements. Here are four easy ways to improve plant productivity.

1. Measure and analyze labor and machine costs by shift, product or operator

In a manufacturing or distribution business, costs can easily get out of hand: money and time can be wasted on redundant processes, too much manual work, and piles of paperwork. Spending days or even weeks trying to sift through spreadsheets won’t be a good use of time to be able to compete in a rapidly changing global marketplace.

2. Identify unnecessary downtime and help reduce bottlenecks

Downtime can have a very deep and lasting impact on bottom lines and can even bankrupt manufacturers. Often downtime is due to bottlenecks, so identifying them is the first step. Many bottlenecks have similar root causes, such as staff underperformance, issues with a machine, supply chain issues, poor raw material planning, or poor ergonomics or configuration. of the machine in the factory. When a bottleneck slows everything down, it can cause delays and increase production costs.

3. Measure product quality and highlight machine or labor issues

It is important to apply world-class manufacturing standards within the factory when measuring the efficiency and performance of equipment and labor. This ultimately provides better quality products that drive customer satisfaction and loyalty. What is required is a detailed analysis of the individual performance of equipment and people with supporting data, including audit trails and a record of problems encountered.

4. Measure operational efficiency and highlight areas requiring special attention

Over the years, manufacturers have continued to strive for operational efficiency, even though a significant improvement would require a fundamental change in their business model. Some manufacturers have implemented programs such as Total Productive Maintenance (TPM) and have focused on improving overall equipment efficiency (OEE) with the same goal of streamlining the manufacturing process and increase production.

While TPM is an equipment maintenance model that strives to use everyone to maintain the plant, it also aims to achieve flawless production without breakdowns, slowdowns or any other machine related issues that affect the flow. OEE is a metric that measures the degree of use of the machine (uptime), the speed of the machine (speed) and the quality of production. The OEE supports TPM-based initiatives by measuring progress towards “perfect production”.

The role of a mother

Using a manufacturing operations management (MOM) solution will help manufacturers continuously improve their productivity and processes while aiming for the highest standards. Most importantly, a MOM solution provides a holistic view of manufacturing operations.

MOM helps organizations generate accurate production schedules that take into account capacity constraints such as people, machines, tooling as well as materials and can help identify production lines that need to be reprogrammed to meet the demand. evolution of customer demand, balancing available capacity. The result is improved delivery to customers on time and in full.

In anticipation of such a change, manufacturers should also start fostering a culture that views data as an asset for better decision making. With a central database provided by an ERP system integrated with a MOM system, manufacturers can begin to accelerate their migration to a smart factory.

As a result, they will be able to collect production data in real time, which allows manufacturers to optimize their production activities from product creation to final production. Manufacturers who want to gain visibility and control over the execution and quality of their shop floor should consider implementing MOM to leverage the capabilities provided by their ERP.

The process of digitizing a manufacturing operation will allow manufacturers to develop entirely new product categories, creating new alternatives for customers, while staying one step ahead of existing and new competitors. Those who deploy a MOM can ensure that they are making the best use of their available capacity to deliver to customers faster and in the most cost effective manner while reducing production costs.

By Rob Stummer, CEO Asia-Pacific at SYSPRO.


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Lear begins work on new electric vehicle parts plant in Detroit https://coachoutletonlinespick.org/lear-begins-work-on-new-electric-vehicle-parts-plant-in-detroit/ https://coachoutletonlinespick.org/lear-begins-work-on-new-electric-vehicle-parts-plant-in-detroit/#respond Tue, 05 Oct 2021 16:04:40 +0000 https://coachoutletonlinespick.org/lear-begins-work-on-new-electric-vehicle-parts-plant-in-detroit/ Work has started on Lear Corp’s new plant. which will manufacture seats for GM’s electric and autonomous vehicles. // Courtesy of Lear Southfield-based Lear Corp. has begun preparing the site of the former Cadillac stamping plant in east Detroit for the construction of a new plant that will supply parts for new electric vehicles produced […]]]>
Work has started on Lear Corp’s new plant. which will manufacture seats for GM’s electric and autonomous vehicles. // Courtesy of Lear

Southfield-based Lear Corp. has begun preparing the site of the former Cadillac stamping plant in east Detroit for the construction of a new plant that will supply parts for new electric vehicles produced at the GM’s Factory Zero assembly plant.

“As one of Michigan’s largest employers, Lear is excited to open a new, state-of-the-art facility in the city of Detroit where we have had an industrial presence for many years,” said Ray Scott , President and CEO of Lear. .

“This just-in-time plant will create hundreds of new jobs and provide seating for the electric and autonomous battery-powered vehicles that will be built nearby at GM’s Zero plant in Detroit-Hamtramck. This facility is just another example of Lear providing innovative, quality and on-time products while helping our customers achieve their sustainability goals.

The new $ 48 million, 684,000 square foot facility near Conner Street and I-94 is expected to create 450 new jobs in the area when it opens in mid-2022. A second phase of the project, which will provide space for another tenant, could include hundreds of additional jobs, officials said.

The Detroiters will have priority status for Lear jobs, as part of a deal the company has made with the city, similar to that entered into by FCA / Stellantis, which has resulted in the hiring of more than 2,100 Detroiters so far. now to the new Jeep assembly. factory on Mack Avenue.

“Major employers understand that Detroit has a large pool of talented workers eager to work,” said Detroit Mayor Mike Duggan. “Thanks to our partners at Lear and (developer) NorthPoint, another vacant visual pollution in Detroit has been removed and will be replaced with a hub of opportunity for the people of Detroit.”

The people of Detroit, according to Duggan, have been involved in Project Lear from the start.

Inner City Contracting, a 51% minority-owned certified contractor based in Detroit and headquartered, led the $ 6 million demolition of the century-old factory.

Fifty-one percent of construction workers who build the new facility must be residents of Detroit, under Executive Order (EO) 2021-2. Any entrepreneur who fails to meet this goal must make a financial contribution to the city’s workforce training fund to prepare more Detroit residents for in-demand construction jobs.

The old Cadillac plant dates back to 1925 as a stamping plant for the Hudson Motor Co. Designed by Albert Kahn, the plant sent auto bodies to the main Hudson assembly plant on Jefferson Avenue . GM bought the plant in 1956, where for 30 years it produced Cadillac hoods, fenders and bumpers. The factory has remained largely vacant since the 1980s.

Some of the financial support the project received included a $ 1 million grant from the Michigan Department of Environment, Great Lakes & Energy (EGLE) via Wayne County for environmental clean-up at the waste retention site. rainy waters. The city of Detroit has approved an $ 18.4 million TIF Brownfield plan for the project. This includes $ 2.4 million in EGLE-approved school catch and $ 3.3 million in MSF-approved school catch. The city also approved an industrial plant exemption tax incentive worth about $ 4 million to support the site’s redevelopment.


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2,500 manufacturing jobs promised at Wythe County glove factory https://coachoutletonlinespick.org/2500-manufacturing-jobs-promised-at-wythe-county-glove-factory/ https://coachoutletonlinespick.org/2500-manufacturing-jobs-promised-at-wythe-county-glove-factory/#respond Mon, 04 Oct 2021 18:36:00 +0000 https://coachoutletonlinespick.org/2500-manufacturing-jobs-promised-at-wythe-county-glove-factory/ WYTHEVILLE, Va. (WDBJ) – Governor Ralph Northam calls a recent investment in southwest Virginia the largest job creation in the region in a generation. Northam was in Wytheville Monday afternoon to announce a joint venture that is expected to create more than 2,500 jobs in the area. The announcement also represents a restoration of jobs […]]]>

WYTHEVILLE, Va. (WDBJ) – Governor Ralph Northam calls a recent investment in southwest Virginia the largest job creation in the region in a generation.

Northam was in Wytheville Monday afternoon to announce a joint venture that is expected to create more than 2,500 jobs in the area.

The announcement also represents a restoration of jobs on American soil, bringing back the creation of personal protective equipment from Asia.

Blue Star NBR, LLC and Blue Star-AGI, Inc., a joint venture between Blue Star Manufacturing and American Glove Innovations (AGI), have committed $ 714.1 million to create an advanced and unique nitrile butadiene rubber. kind. (NBR) Nitrile Glove Manufacturing Plant and Production Operation in Progress Park in County Wythe.

Governor Northam said the business is a direct result of the state’s investments that will modernize Progress Park. These investments include $ 3 million to expand the Fort Chiswell wastewater treatment plant, $ 1.5 million to expand public sewer infrastructure and $ 4 million to build a water reservoir to serve all Progress Park. The water tank and plant improvements are also planned to serve the surrounding community. They will occupy about 200 acres, with the potential to triple in size in the future.

During the announcement Monday in Wytheville, executives said Virginia had successfully competed against Tennessee and Texas for the project. These 2,500 jobs should appear within three to five years.

“These investments are leading to the biggest commitment to job creation Southwest Virginia has seen in a generation, and it is a game-changer for the Commonwealth,” Governor Northam said in a press release. “It’s about investing to bring jobs back to the United States from overseas, and doing it right here in rural America. We can all be proud that Commonwealth investment is bringing these jobs back to America on this unique manufacturing campus. It can be a transformation for all of Southwest Virginia. “

According to Blue Star NBR, the company produces nitrile butadiene rubber, an oil-resistant synthetic rubber made from a copolymer of acrylonitrile and butadiene. The first NBR facility in County Wythe is expected to have an annual capacity of around 90,000 metric tonnes, which can support the production of up to 11 billion gloves per year. The first of Blue Star-AGI’s facilities aims to launch a quantity of between 5 and 8 billion gloves per year, then increase to reach a production of 60 billion gloves per year.

Executives say they will focus primarily on selling in North America. They plan to produce for distributors and users in the healthcare, government, retail and hospitality sectors.

The company aims to meet the demand for these kind of gloves and help solve the supply chain shortages and breakdowns that have been highlighted by the pandemic.

Congressman Morgan Griffith and Delegate Chris Hurst were on hand for the announcement, along with a number of other local leaders.

You can read more about the announcement here.

Copyright 2021 WDBJ. All rights reserved.


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In Asia, power supply and shortages are hurting growth https://coachoutletonlinespick.org/in-asia-power-supply-and-shortages-are-hurting-growth/ https://coachoutletonlinespick.org/in-asia-power-supply-and-shortages-are-hurting-growth/#respond Sun, 03 Oct 2021 21:58:41 +0000 https://coachoutletonlinespick.org/in-asia-power-supply-and-shortages-are-hurting-growth/ Many Asian countries that depend on exports face supply shortages, power outages and other problems. Information released on Thursday showed that output at Japanese factories has slowed and expectations for China’s manufacturing have weakened. Japan’s Suzuki Motor Corporation has become the latest automaker to freeze production lines for days due to a lack of parts. […]]]>

Many Asian countries that depend on exports face supply shortages, power outages and other problems.

Information released on Thursday showed that output at Japanese factories has slowed and expectations for China’s manufacturing have weakened.

Japan’s Suzuki Motor Corporation has become the latest automaker to freeze production lines for days due to a lack of parts. Suzuki said it plans to suspend operations at a factory in central Japan. Another factory is also expected to freeze production for two days.

Japan’s emergency coronavirus measures ended on September 30. But other countries have reinstated restrictions. This made experts uncertain about economic conditions.

Closures linked to the pandemic have affected manufacturers across Asia. In Japan, industrial production in August fell 3.2% from the previous month. Auto makers and producers of information technology products and other electronic equipment have been hit the hardest, the Japanese government reported.

Other automakers have also slowed down their operations. They say shortages of computer chips and other parts are interfering with normal production.

FILE – An employee wearing a face shield and face shield works on the automotive assembly line at the Kawasaki plant of Mitsubishi Fuso Truck and Bus Corp, owned by German company Daimler AG, in Kawasaki, south of Tokyo, Japan, May 18, 2020 (REUTERS)

Shortages may last longer than expected

Retail sales in Japan fell 4.1% from the previous month. It was more than expected. Low demand for clothing and Appliances were blamed for the decrease.

In a commentary, Harumi Taguchi of research firm IHS Markit warned, “The risks of semiconductors and other making up shortages could persist for an extended period. Semiconductors are a very important part for electronics. Taguchi blamed new coronavirus infections in some countries and slow vaccination campaigns in Southeast Asia.

In addition to Japan, an official factory study managers showed that Chinese manufacturing also slowed in August.

The Manufacturing Purchasing Managers Index is a widely used measure of business activity. For China, the index fell from 50.1 in August to 49.6 in September. An index value less than 50 means business activity is decreasing while a value greater than 50 means it is expanding.

The study was carried out before power cuts began to cause factories in parts of China to suspend operations.

Capital Economics researcher Julian Evans-Pritchard said in a report that the energy-intensive chemical and metal industries showed the most weakness. Pritchard said business leaders “have noted that material shortages and transportation delays are still hampering production.”

The growing demand for computers for people working from home rather than the office has resulted in a limited supply of computer parts.

Shortages of shipping containers and temporary port closures due to COVID-19 outbreaks have also led to slowdowns in product marketing.

Dutch bank Rabobank said in a report on the shipping industry that the port closures have had long-term effects.

Rabobank reported, “Chinese and Southeast Asian ports are still suffering from the consequences of those earlier closings, with record queues of ships awaiting unloading. “Queue means a queue of people or things waiting.

He estimated that 10% of the world’s shipping containers are on ships awaiting unloading at a port.

I am Mario Ritter, Jr.

Elaine Kurtenbach reported this story for The Associated Press. Mario Ritter Jr. adapted it for VOA Learning English. Ashley Thompson was the editor.

___________________________________________________

Words in this story

retail –Adj. selling products to the people who use them and not to other businesses

making up -not. a part of something (like a system or a mixture): an important part of something

persist –V. continue to occur or exist beyond the usual, expected or normal time

director -not. someone who is responsible for a company, department or similar organization

consequences -not. (PL.) something that happens as a result of a particular action or set of conditions

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Nike, Under Armor and more face supply issues in Vietnam https://coachoutletonlinespick.org/nike-under-armor-and-more-face-supply-issues-in-vietnam/ https://coachoutletonlinespick.org/nike-under-armor-and-more-face-supply-issues-in-vietnam/#respond Sat, 02 Oct 2021 13:42:00 +0000 https://coachoutletonlinespick.org/nike-under-armor-and-more-face-supply-issues-in-vietnam/ In particular, some of America’s biggest clothing and footwear vendors cite a catalyst that has escalated the pressure: factory closures in Vietnam resulting from a second wave of the coronavirus outbreak there. This has led brands from PacSun to Nike to warn of the effects on their supply. End December, Nike (NKE) slashed its full-year […]]]>

In particular, some of America’s biggest clothing and footwear vendors cite a catalyst that has escalated the pressure: factory closures in Vietnam resulting from a second wave of the coronavirus outbreak there. This has led brands from PacSun to Nike to warn of the effects on their supply.

End December, Nike (NKE) slashed its full-year sales outlook due to supply chain issues, although its CEO noted strong consumer demand.

Nike manufactures about three-quarters of its shoes in Southeast Asia, with 51% and 24% of manufacturing in Vietnam and Indonesia, respectively.

But as the Vietnamese government imposed restrictions related to the pandemic, including a mandatory shutdown of factories for several weeks from July to September, Nike said it suffered 10 weeks of production loss.

Even when factories begin to reopen, which the company plans to do in phases from October, ramping up to full production could take several months, Nike CFO Matthew Friend said during of a recent call for results. Half of Nike’s clothing factories in Vietnam are currently closed, company executives said during the call.

Vietnam accounts for a third of the production of footwear and clothing for the sports brand Under Armor. Under protection (TO)Patrik Frisk CEO said in his last earnings call in August that he was closely monitoring the impact of plant closures on his supply chain, calling it “a developing situation.”

Ugg, Coach and Michael Kors have an exhibition

Vietnam is a crucial supplier to the United States, especially for clothing and footwear.

“It is a very big partner of the United States. It’s our second largest source of clothing and footwear, ”said Steve Lamar, president and CEO of the American Apparel and Footwear Association, an industry group. China is the largest supplier of clothing and footwear, according to AAFA.

In July, Vietnam was caught in the throes of a coronavirus outbreak caused by a suspected new variant of the virus, which the Vietnamese Minister of Health said has led to the rapid spread of new infections in the country’s industrial areas. .

The government subsequently imposed strict closures and temporarily closed factories there until mid-August, then extended it until September. Some factories are still closed.

This all means that the production of everything from sneakers and sandals to jeans, dresses, t-shirts, jackets, etc. is at a standstill.

In a research note last month, BITG analyst Camilo Lyon said athletic shoe brands such as Nike and Adidas are most at risk of serious supply chain disruptions because ” Vietnam has been a strong manufacturing alternative to China in recent years. “

Other brands that have significant manufacturing exposure in Vietnam, he said, include the maker of Ugg Outdoor Deckers (PLATFORM), Columbia Sportswear, Parent Coach Tapestry (TPR) and Capri Holdings (which owns the Michael Kors brand).

Lyon estimates that it may take five to six months for the Vietnamese factories to be operational again and functioning normally after the lockdown ends. And every time they come back online, he anticipates another problem: the staff.

“Vietnamese factories are also likely to struggle to get workers back to work after the lockdown,” he said.

Teen retailer PacSun expects an impact on the holiday season.

Brieane Olson, president of PacSun, said in an August interview with CNNBusiness that about 10% of its products come from Vietnam.

Olson said the retailer was already facing a two to four week delay for its back-to-school inventory this year due to ongoing delays in the global supply chain.

Now, she said, new products for the winter and the holiday season are also expected to face another four-week delay, she said, making it a challenge to get new fashions and styles of jeans, tops, pullovers and sweatshirts in stores timely. manner.

And there is an additional effect on the consumer, Olson said: Having fewer products means the retailer will take the discounts “because it doesn’t have to,” she said.


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Snowcone the Happy Unicorn is the latest victim of the manufacturing chaos https://coachoutletonlinespick.org/snowcone-the-happy-unicorn-is-the-latest-victim-of-the-manufacturing-chaos/ https://coachoutletonlinespick.org/snowcone-the-happy-unicorn-is-the-latest-victim-of-the-manufacturing-chaos/#respond Fri, 01 Oct 2021 19:58:00 +0000 https://coachoutletonlinespick.org/snowcone-the-happy-unicorn-is-the-latest-victim-of-the-manufacturing-chaos/ Fargo, which imports Snowcone from a manufacturer in China, paid $ 1,300 in May for 500 of them. When she went to renew her order in August, the same order cost $ 9,000. “I can’t place an order. My margins just don’t support it,” said Fargo, whose Costa Mesa, Calif.-based company Cre8ive-D normally sells the […]]]>
Fargo, which imports Snowcone from a manufacturer in China, paid $ 1,300 in May for 500 of them. When she went to renew her order in August, the same order cost $ 9,000.
“I can’t place an order. My margins just don’t support it,” said Fargo, whose Costa Mesa, Calif.-based company Cre8ive-D normally sells the product on its website and in Hallmark stores. Fargo is looking for manufacturing options in India and Europe to produce a few hundred stuffed animals for Christmas, but its hopes are fading. Fargo had considered raising customer prices to offset its higher costs, but its window for securing toys for the holidays is gone.

“It really is a blow,” she said.

The problem isn’t customer demand for the toy, according to Fargo. “The demand is there. It’s the supply.”

Rising spending and the myriad pressures on supply chains – factory closures, bottlenecks at major ports, and difficulties hiring domestic truck drivers – are wreaking havoc on companies in the industry. all sizes that enter the pivotal holiday period. They are especially difficult to navigate for mom and pop owners like Fargo. This could impact the products they can carry around during the holidays and the prices at which they sell them more than their larger competitors, according to supply chain experts.

“Large retailers have a huge advantage over small stores because of their size, resources, supplier relationships and systems,” said Patrick Penfield, professor of supply chain management at the ‘Syracuse University. “Small retailers are really going to have a hard time stocking their shelves. It will be a tough holiday season for them.”

Thirty-seven percent of small business owners say supply chain disruptions have had a significant impact on their business, while 29% reported a moderate impact, according to a survey of 595 companies in August by the National Federation of Independent Businesses, a small lobbying firm. group. A September survey of 2,682 small business owners by Alignable, a small business social networking company, found that 78% said they had difficulty sourcing.

As businesses battle to secure inventory for vacation shoppers, larger companies have the upper hand over smaller competitors at almost every link in the chain, according to supply chain experts. They also have a greater ability to absorb higher costs, experts say.

“If you’re a Walmart or Target supplier you’re going to do whatever they ask for just because of the sheer volume of what they’re buying and getting potential deals going forward,” Penfield said. .

Why small stores are at a disadvantage

This year, the best players like Walmart (WMT), Costco (COST), Target (TGT), Home deposit (HD) and others charter their own private vessels to import goods from overseas, load additional inventory, and use more expensive air freight to ship goods.
“We’ll be ready for the holidays,” Target CEO Brian Cornell said in an interview with CNBC in August. “We have a lot of inventory coming to us right now.”
A big advantage for large chains is scale, which translates into priority with shippers. Edwin Keh, director of the Hong Kong Research Institute of Textiles and Apparel and former COO and senior vice president of global purchasing at Walmart, said large retailers have long-term contracts with shipping companies and volume enough to make them the most important shippers. customers. This is a big advantage when containers are stuck in ports.

“This causes their containers to be loaded first and finally unloaded,” he said in an email. “They also have dedicated agents at the ports to facilitate the customs clearance process, saving them time.”

Large retailers also often have back-up providers in different parts of the world to enable them to avoid port bottlenecks, he said. “If some ports or routes from Asia are too congested, they can move to Central or South America to manufacture their products and vice versa,” Keh said.

Most independent stores do not have access to capital to fund expensive options like chartering ships, nor do they have back-up providers.

The holidays are usually a busy time for Simply Naked Candle Co., a candle shop in Conyers, Georgia. But this year, the store is struggling to source jars, wax and perfumes from domestic suppliers that are essential to the production of its most in-demand candles, such as Love and Honey, Brown Sugar, and Pineapple Passion.

Co-owner Shante Smith has set up essential oil supplier email alerts that let her know when the oils she needs are back in stock. She recently received an alert at 2 a.m. and woke up to buy the product on the spot because she feared it might run out in the morning.

Smith pays $ 5 for pots that cost $ 1.75 last year. A 50-pound box of wax costs $ 110, compared to $ 55. Smith used to order these supplies in bulk, but now she orders them piecemeal when she runs out because she doesn’t have the money to pay for the amount she would normally get.

“If we could afford to order more, we would,” she said. “We have a very, very strict budget.”

Ideally, Smith would buy full pallets of around 1,000 jars, which would allow her to lower the price she pays per unit. “If we could afford to order more, we would,” she said. “We have a very, very strict budget.” But she is forced to pay more for less because she cannot meet this threshold.

“If I had enough to buy pallets at once, it would be a good Christmas for me.”


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Global manufacturing activity hit hard by supply chain bottlenecks and rising costs https://coachoutletonlinespick.org/global-manufacturing-activity-hit-hard-by-supply-chain-bottlenecks-and-rising-costs/ https://coachoutletonlinespick.org/global-manufacturing-activity-hit-hard-by-supply-chain-bottlenecks-and-rising-costs/#respond Fri, 01 Oct 2021 11:32:55 +0000 https://coachoutletonlinespick.org/global-manufacturing-activity-hit-hard-by-supply-chain-bottlenecks-and-rising-costs/ Staff work on a Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020. SWIMMING POOL New / Reuters Global manufacturing activity has been hit hard by supply chain bottlenecks and escalating costs, exacerbated by pandemic-induced factory closures in Asia and signs of slowing Chinese growth , surveys showed on Friday. While countries where outbreaks of […]]]>

Staff work on a Volkswagen assembly line in Wolfsburg, Germany, April 27, 2020.

SWIMMING POOL New / Reuters

Global manufacturing activity has been hit hard by supply chain bottlenecks and escalating costs, exacerbated by pandemic-induced factory closures in Asia and signs of slowing Chinese growth , surveys showed on Friday.

While countries where outbreaks of the Delta coronavirus variant have receded have seen an improvement in activity, growth has declined in some as chip shortages and supply disruptions have impacted those who still struggling to get rid of the COVID-19 hit.

Manufacturing growth in the Eurozone and Britain remained strong, but activity suffered from logistics challenges, product shortages and a labor shortage that are expected to persist and maintain inflationary pressures high.

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“While some of the bottlenecks are expected to begin to ease soon, many industries – especially those requiring semiconductors – are expected to face disruption for much of 2022,” said Martin Beck, economic adviser. principal of the EY ITEM club.

“This signals that activity will likely remain limited for some time.”

IHS Markit’s final Purchasing Managers’ Index (PMI) fell to 58.6 in September from 61.4 in August and the UK PMI fell for the fourth consecutive month from 60.3 to 57.1 . Anything over 50 indicates growth.

Factories in Germany, Europe’s largest economy, buzzed almost undisturbed during pandemic shutdowns that impacted the service sector, but shortages of intermediate goods and some raw materials are now holding back the industry.

The growth of the French manufacturing industry weakened a little more than initially expected, according to its PMI, the problems of supply of goods weighing on the industry.

These supply bottlenecks have kept the pressure on the costs of raw materials needed by factories and manufacturers passed on some of these increases to customers and the Eurozone producer price index. ‘has approached the record high for the summer.

Inflation in the common currency area jumped to a 13-year high of 3.4% last month, according to preliminary official data released on Friday, well above the central bank’s target of 2.0% European.

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Manufacturing growth in the United States also weakened last month, according to data due later on Friday.

ASIAN STRAIN

China’s declining economic momentum has dealt a further blow to the region’s growth prospects, with official PMI showing on Thursday that the country’s factory activity contracted unexpectedly in September due to broader restrictions of electricity consumption.

Although the Caixin / Markit private manufacturing PMI index has performed better than expected after the fall in August, growing signs of weakness in the world’s second-largest economy are clouding the outlook for neighboring countries.

“While the coronavirus restrictions on economic activity can be gradually lifted, the slowness at which this will occur means that the economies of Southeast Asia will stagnate for the rest of the year,” Makoto Saito said, economist at the NLI Research Institute.

Manufacturers in Japan, the world’s third-largest economy, have come under pressure from pandemic restrictions and increased supply chain disruptions along with raw material shortages and delivery delays and its PMI has marked its pace of expansion on slower since February.

The activity of the Taiwanese factories continued to develop but at its slowest pace in more than a year while the Vietnamese index remained unchanged.

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The PMIs of South Korea, India and Indonesia increased.

“While regional PMIs have shown that the disruption caused by large waves of viruses in the region is easing somewhat, unfulfilled orders continue to pile up, meaning that the resulting shortages further into the supply chains are expected to persist for some time, ”said Alex Holmes, emerging Asia economist at Capital Economics.

Once seen as an engine of global growth, emerging economies in Asia are lagging behind advanced economies in recovering from the pain of the pandemic as delays in vaccine deployment and a spike in Delta variant cases hamper for consumption and factory production.

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Global supply crisis is fueling German inflation | Business | Economic and financial news from a German point of view | DW https://coachoutletonlinespick.org/global-supply-crisis-is-fueling-german-inflation-business-economic-and-financial-news-from-a-german-point-of-view-dw/ https://coachoutletonlinespick.org/global-supply-crisis-is-fueling-german-inflation-business-economic-and-financial-news-from-a-german-point-of-view-dw/#respond Thu, 30 Sep 2021 20:41:46 +0000 https://coachoutletonlinespick.org/global-supply-crisis-is-fueling-german-inflation-business-economic-and-financial-news-from-a-german-point-of-view-dw/ Germans who are considering buying a new car these days should dig deeper into their pockets, as rising prices in the auto industry have made vehicles € 360 ($ 416) more expensive on average than there was. some months. “The decrease in the number of used cars on the market and the decline in manufacturer […]]]>

Germans who are considering buying a new car these days should dig deeper into their pockets, as rising prices in the auto industry have made vehicles € 360 ($ 416) more expensive on average than there was. some months.

“The decrease in the number of used cars on the market and the decline in manufacturer discounts recently caused the prices of the 30 best-selling cars to skyrocket as well as those of electric and hybrid cars,” said an automotive expert from Center Automotive. Research (CAR) of Duisburg. , Ferdinand Dudenhöffer, told DW.

However, the rise in showroom prices is mainly due to exploding costs in the automotive industry, he added, as a global semiconductor shortage weighed on the margins of the world’s automakers. whole. “The shortage of chips increases the net prices of cars and limits the ability of sellers to offer discounts to customers,” Dudenhöffer explained.

The global chip crisis is not only increasing the ex-factory prices of cars, it is even drastically reducing car production. A number of automakers have been forced to cut shifts or work hours in recent weeks.

The Italian-American auto giant Stellantis – a conglomerate of former US carmaker FiatChrysler and French group PSA – is a prime example. On Thursday, September 30, the company announced that its German subsidiary Opel is expected to stop producing cars at its plant in Eisenach, Germany, at least for the remainder of the year. Workers there would be put on hourly work schedules until the chip tightening eases, hopefully in early 2022, the company said.

Inflation hits its highest level since 1993

Delivery delays and parts shortages have driven prices up in various German industries beyond car manufacturing. Overall, German inflation in September jumped to 4.1%, according to preliminary figures, the biggest year-over-year increase in nearly 30 years.

The German Federal Statistical Office (Destatis) attributes the increase in part to so-called base effects resulting from a 3% reduction in sales tax adopted by the government in July 2020 to combat the economic slump of COVID-19 and falling energy prices during the pandemic. But global supply bottlenecks were also behind the spike in inflation, statisticians said.

While the lack of sufficient semiconductors weighs particularly heavily on industries like automotive and electronics, the construction sector suffers greatly from shortages of wood, steel and plastic. Prices have also exploded there.

Wobbly restart

Behind the global problems lies a massive mismatch between supply and demand caused by the COVID pandemic. After the establishment of vaccination campaigns in various industrialized countries and the relaxation of containment measures, economies are recovering from the crisis, with the demand for materials and goods increasing considerably.

At the same time, however, many manufacturers are still in crisis mode and are just starting to increase production. The difficulties in getting employees on leave back to work and the bottlenecks that still exist in some emerging market economies compound the current problems.

Sportswear maker Adidas, for example, is suffering from major production outages at its suppliers in Vietnam, as the Southeast Asian nation remains in the grip of the pandemic, with infections rising again. Desperate for deliveries, Adidas has announced that it is considering temporarily relocating part of its production outside Vietnam.

Vietnamese government reimposed drastic lockdown measures as infections rise again

Adidas’ rival Nike faces the same problem with Vietnamese manufacturers as the country has emerged as one of the biggest suppliers to the global fashion industry. Nike chief financial officer (CFO) Matt Friend said restarting production and restoring pre-crisis production levels would take months. Friend’s point of view was echoed by German company Puma which recently said in a press release that the entire global textile industry was affected by the pandemic situation in Vietnam.

The media also recently said that iPhone maker Apple may be facing delivery bottlenecks regarding its latest iPhone 13 model, suggesting that potential buyers should be prepared for a limited supply of the gadget in stores. .

Temporary or for longer?

A few months ago, central bank officials in the United States and Europe were still optimistic that the period of rising inflation induced by the pandemic would only be temporary, as the Fed chairman insisted, Jerome Powell, in July.

A photo of Jerome Powell on a TV screen with a scholarship staring at him

Central bankers like Jerome Powell are walking a tightrope in balancing rising inflation and post-pandemic demand

During this time, however, they no longer seemed so sure that the constraints of the global supply chain, which fuel inflation, could be corrected as soon as possible. European Central Bank (ECB) President Christine Lagarde said Wednesday (September 29) during an ECB forum that she was “concerned” that the end of bottlenecks – once considered by economists as in a few weeks – was “uncertain”.

“Supply bottlenecks and disruption of supply chains… seem to continue and in some industries to accelerate. I’m thinking here of shipping, cargo handling and things like that.” , she said.

And Jerome Powell, who was speaking alongside Lagarde, said it was “frustrating” to see supply chain problems “not improving”, but at the margin apparently “getting a little worse” .

“We see this probably continuing next year and holding inflation longer than we expected,” Powell added.

According to a recent survey carried out by the German think tank ifo, around 77% of industrial companies in this country have experienced bottlenecks and supply problems in securing raw materials and intermediate products. This was 7% more than in an ifo survey conducted the previous August.

“Supply side bottlenecks are tightening,” ifo poll director Klaus Wohlrabe noted in the institute’s September report. A glimmer of hope is emerging in the German construction sector, however, where the situation has calmed down somewhat, he added.

This article was adapted from German.


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