GLOBAL SUPPLY CHAINS NOW HAVE SPARE CAPACITY FOR THE FIRST TIME SINCE JUNE 2020 AS 10 MONTHS OF SUBDUED DEMAND, INVENTORY DE-STOCKING AND HIGH INTEREST RATES BITE

GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX - Seite 2

The key findings from April's data:

• DEMAND: Global demand for raw materials, commodities and components continues to be subdued, especially in Europe. In North America, the trend is improving despite high interest rates.
  
  
• INVENTORIES: Inventories fall as companies continue to address overstocked warehouses. Reports of safety stockpiling are below their historic average for the first time since the start of the pandemic in 2020.
  
  
• MATERIAL SHORTAGES: Business reports of item shortages are at their lowest since September 2020. Shortages were particularly low for metals and chemicals, although poor availability is still ongoing for semiconductors and electrical items.
  
  
• LABOR SHORTAGES: As has been the case since the start of 2023, labor shortages are having little adverse effect on suppliers, indicating current staffing is adequate to cope with demand.
  
  
• TRANSPORTATION: Global transportation costs remain stable and anchored around historically normal levels, reflecting efficiently operating supply chains as pressures on freight have subsided.
  
  
• REGIONAL SUPPLY CHAIN VOLATILITY: Global supply chain volatility is falling in Europe and North America. Suppliers feeding in Asia are under the least amount of strain since August 2020 because of China's fully reopened economy.

 

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Note: Full historic data dating back to January 2005 is available for subscription. Please contact [e-mail].

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.