DEMAND FOR RAW MATERIALS AND SEMI-MANUFACTURED GOODS WEAKENED IN JULY, FALLING AT FASTEST RATE THIS YEAR, SIGNALLING SLOWING ECONOMIC GROWTH: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

CLARK, N.J., Aug. 12, 2024 /PRNewswire/ -- In July, the GEP Global Supply Chain Volatility Index â€” a leading indicator tracking demand conditions, shortages, transportation costs, inventories and backlogs based on a monthly survey of 27,000 businesses — signaled underutilized capacity at global suppliers for the first time since April, falling to a four-month low.

The greatest level of slack in supply chains was in Europe, which continues to grapple with recession conditions in its manufacturing sector, especially in Germany. Asia growth also cooled as factory demand in the region contracted to its weakest since December 2023. Underlying data revealed a decrease in purchasing activity by Chinese factories — the first time this has occurred in nine months. Japan's manufacturing sector was also a source of weakness.

Suppliers to North American companies reported slightly underutilized capacity during July, as was the case in June. Slowing purchasing activity was seen across all three countries within the region, with Canada reporting the steepest contraction. Notably, Mexican factories, which have been a driver of growth in the region this year, reported lower input demand for the first time since October 2023.

"In July, purchasing activity by global manufacturers declined, indicating that economic growth is slowing, adding to the calls for the Federal Reserve to lower interest rates sooner rather than later," explained Mike Jette, vice president, consulting, GEP. "This is not alarming data. The world's supply chains continue to operate efficiently, with no sign of stockpiling, shortages, or price pressures. But to head off any material slowdown in the second half of the year, manufacturers do need demand to increase."

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.

JULY 2024 KEY FINDINGS

REGIONAL SUPPLY CHAIN VOLATILITY

For more information, visit www.gep.com/volatility.

Full historical data dating back to January 2005 is available for subscription. Please contact economics@spglobal.com.

The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, September 11, 2024.

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. 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 SOFTWAREâ„¢, GEP STRATEGYâ„¢ and GEP MANAGED SERVICESâ„¢ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 550 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 www.gep.com.

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.

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Email: joe.hayes@spglobal.com

GEP                                             

Principal Economist

Phone: +1 732-382-6565           

S&P Global Market Intelligence     

Email: derek.creevey@gep.com      

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DEMAND FOR RAW MATERIALS AND SEMI-MANUFACTURED GOODS WEAKENED IN JULY, FALLING AT FASTEST RATE THIS YEAR, SIGNALLING SLOWING ECONOMIC GROWTH: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

DEMAND FOR RAW MATERIALS AND SEMI-MANUFACTURED GOODS WEAKENED IN JULY, FALLING AT FASTEST RATE THIS YEAR, SIGNALLING SLOWING ECONOMIC GROWTH: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

Expanding communication services capability in the global B2B market

TOKYO, Sept. 20, 2024 /PRNewswire/ -- Ricoh Company, Ltd. today announced that it has concluded a memorandum of understanding (MOU) with LG Electronics (LG), a trusted partner offering innovative products and customized solutions for diverse industries worldwide, to collaborate on digital solutions for workplaces. Pairing Ricoh's communication services and LG's display products, this partnership will deliver B2B customers in the global market an elevated user experience and exceptional customer value. Through this partnership, Ricoh will further enhance its capability in the Workplace Experience domain, one of its growth areas, and it aims to be the top global audiovisual (AV) integrator.

Partnering with LG, Ricoh will strive to enhance its communication services in the Workplace Experience domain. Integration of high-quality devices such as signages and displays into Ricoh solutions will enrich Ricoh's product and service portfolio and achieve a stable global supply. In addition, the two companies will jointly drive associated sales and marketing efforts and explore new business opportunities as the partnership unfolds.

Takahiro Irisa, Senior Corporate Officer and President of Ricoh Digital Services and Paik Ki-Mun, Senior Vice President and Head of the Information Display Business Unit of LG Business Solutions Company, present the signed memorandum of understanding.

As its mid-term vision, Ricoh aims to provide consistent global services as a workplace services provider in the changing workplace. In the Workplace Experience domain, Ricoh provides solutions enabling seamless collaboration in offices and other workplaces where hybrid work has become commonplace, enhancing people's creativity. Ricoh empowers customers to focus on value adding, creative tasks and achieve organizational growth through its integrated solution propositions of hardware, software, and managed services that comfortably utilize them.

"The pairing of Ricoh's office solutions with LG's advanced display products will deliver impressive value to customers and further establish LG as one of the most trusted providers of integrated solutions in the B2B market," said Paik Ki-Mun, Senior Vice President and Head of the Information Display Business Unit of LG Business Solutions Company. "LG will continue to pursue strategic partnerships with innovative global companies to create customized solutions for today's business environment."  

Takahiro Irisa, Senior Corporate Officer and President of Ricoh Digital Services Business Unit, Ricoh Company, Ltd. said "We firmly believe that this global strategic partnership with LG will accelerate Ricoh's Workplace Experience business. Through the synergy between LG's advanced display products and Ricoh's communication services, we will continue to offer optimal workplace to our customers as a workplace services provider. Ricoh will continue to execute strategic partnerships to empower our customers to achieve fulfilment through work."

 

| About Ricoh |

Ricoh is a leading provider of integrated digital services and print and imaging solutions designed to support the digital transformation of workplaces, workspaces and optimise business performance.

Headquartered in Tokyo, Ricoh's global operation reaches customers in approximately 200 countries and regions, supported by cultivated knowledge, technologies, and organisational capabilities nurtured over its 85-year history. In the financial year ended March 2024, Ricoh Group had worldwide sales of 2,348 billion yen (approx. 15.5 billion USD).

It is Ricoh's mission and vision to empower individuals to find 'Fulfillment through Work' by understanding and transforming how people work so we can unleash their potential and creativity to realise a sustainable future.

For further information, please visit www.ricoh.com

 

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© 2024 RICOH ASIA PACIFIC PTE LTD. All rights reserved. All referenced product names are the trademarks of their respective companies.

 

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

Ricoh and LG Announce Global Partnership to Enhance Workplace Experience Solutions