Weekly Roundup - German Industrial Production, China´s Export Bounce and CPG Brands Lean on Technology

German industrial production saw a 1% increase in January, the first rise in nine months, driven by growth in construction and certain manufacturing sectors, but hampered by a sharp decline in car production. The overall production level remains near the lowest since 2020, indicating the ongoing struggle in Germany's manufacturing sector. Germany's economic performance has been a drag on the wider eurozone, with the Bundesbank warning of a potential first recession since the pandemic. Economists have revised down growth forecasts, with expectations of minimal to no growth in 2024. The government has also reduced its growth prediction to 0.2%, down from 1.3% previously. In response, the ruling coalition is working on a 7 billion euro package to stimulate the economy.

Sphera has released its inaugural Supply Chain Risk Report. Supply chains in 2023 faced inflation, rising interest rates, natural hazards, and ESG-related concerns like human rights violations and labor practices. The report highlights financial risks, including worsening revenue outlook, insolvency, bankruptcies, and site relocations or closures, emphasizing the need for companies to factor finance-related risks into their strategic planning.

China's exports saw a significant increase of 7.1% in January and February compared to the previous year, while imports rose by 3.5%, resulting in a record trade surplus of $125 billion. However, economists caution against interpreting this as the beginning of a strong recovery due to various factors. They express concerns about the reliability of external demand for sustained growth, given the slowing global economy and elevated geopolitical risks.

Midsize consumer products companies are focusing on enhancing their supply chain optimization strategies, with a significant emphasis on technology adoption, according to a recent IDC Info Snapshot. The use of technology for supply chain management is prioritized over traditional tactics, reflecting the growing recognition of technology's role in enhancing supply chain resiliency and visibility. Many midsize companies are concerned about their digital competencies limiting their ability to adapt to new business models.

Dive deep into research

"An analysis of critical factors for adopting machine learning in manufacturing supply chains" by Revati Gardas, Swati Narwane (2024)

"A novel stackelberg game-theoretic optimization model for interaction between two closed-loop supply chains with a queueing approach" by Qin Wang, Amruth Ramesh Thelkar (2024)

Events

CONF3RENCE

When: 15. - 16. May 2024

Where: Dortmund, Germany

What: The event brings together the brightest minds and the most forward-thinking companies when it comes to Blockchain, Web3, Cryptocurrencies, NFTs, Metaverse and AI. It serves as a conduit for understanding and harnessing the transformative potential of blockchain technology, a cornerstone of Web3, as high-profile enthusiasts share their ideas, innovations and visions for the future.

ACHEMA

When: 10. - 14. June 2024

Where: Frankfurt am Main, Germany

What: Modern, interactive and always up to date: With a unique range of topics, exciting innovations and new event formats, the world's leading trade show for the process industries brings together experts, decision makers and trendsetters from all over the world.

PCIM Europe

When: 11. - 13. June 2024

Where: Nuremberg, Germany

What: As the leading international exhibition and conference for Power Electronics, Intelligent Motion, Renewable Energy and Energy Management, the PCIM Europe is the international meeting point for the industry. In addition, the PCIM Europe offers further formats to keep the community up-to-date throughout the year.