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China Dislodges Malaysia from American Microwave Oven Supply Chains

microwave

China Dislodges Malaysia from American Microwave Oven Supply Chains

IndexBox has just published a new report: ‘U.S. – Microwave Ovens – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

Despite global logistical tensions amid the sharp container shortage, the U.S. continues to boosts microwave oven imports. Last year, American purchases spiked by +16.3% to $1.6B, reaching the highest level ever. In the first seven months of 2021, American imports reached 12.9M units, exceeding last year’s 12.1M units over the same period. China dominates American imports, supplying 95% of the total volume. In 2020, Chinese shipments to the U.S. jumped by +29% y-o-y to 22M units, while Malaysia saw a 19%-decline in supplies. Chinese microwave ovens thus drive out Malaysian products from the American market. 

American Microwave Oven Imports

In 2020, microwave oven imports into the U.S. surged to 23M units, increasing by +25% against the previous year’s figure. In value terms, microwave oven imports rose by +16.3% y-o-y to $1.6B (IndexBox estimates) in 2020. In the first seven months of 2021, American purchases reached 12.9M units against 12.1M units imported over the same period of 2020.

In 2020, China (22M units) was the main microwave oven supplier to the U.S., with a 95% share of total imports. Moreover, microwave oven imports from China exceeded the figures recorded by the second-largest supplier, Malaysia (1.2M units), more than tenfold.

In physical terms, Chinese supplies rose by +29% y-o-y in 2020. This year, imports from China continue to grow: over the first seven months of 2021, Chinese import volume reached 12.2M units, exceeding by +6.7% the figures of the same period of 2020.

Imports from Malaysia fell by -18% y-o-y last year. In the first half of 2021, Malaysian supplies tended to decline.

In value terms, China ($1.5B) constituted the largest supplier of microwave ovens to the U.S., comprising 89% of total imports. The second position in the ranking was occupied by Malaysia ($156M), with a 9.5% share of total imports.

In 2020, the average microwave oven import price amounted to $70 per unit, shrinking by -6.9% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Malaysia ($132 per unit), while the price for China stood at $66 per unit. In 2020, the most notable rate of growth in terms of prices was attained by Malaysia.

Source: IndexBox Platform

candle

Germany’s Candle and Taper Imports to Hit Record High this Year

IndexBox has just published a new report: ‘Germany – Candles And Tapers – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

Germany is rapidly increasing its imports of candles and tapers. In the first seven months of 2021, Germany imported 84K tonnes of candles worth $230M. These figures exceed the last year’s 67K tonnes worth $163M imported over the same period. Poland remains the prime trade partner, supplying 58% of candle and taper volume imported to Germany in 2020. In physical terms, German purchases from Poland grew by +7.0% y-o-y last year.

Germany’s Candle and Taper Imports

In the first seven months of 2021, Germany purchased abroad 84K tonnes of candles, exceeding by 25% the last year volume of the same period. In value terms, Germany’s imports grew by +41%, reaching $230M.

As of 2020, candle and taper imports into Germany rose modestly to 171K tonnes in 2020, increasing by +4.3% against the previous year’s figure. In value terms, they grew by +5.2% y-o-y to $429M (IndexBox estimates) in 2020.

Poland (100K tonnes) constituted the largest candles and tapers supplier Germany’slast year, with a 58% share of total imports. Moreover, candles and tapers imports from Poland exceeded the figures recorded by the second-largest supplier, the Netherlands (23K tonnes), fourfold. China (16K tonnes) ranked third in terms of total imports with a 9.4% share.

In 2020, the average annual growth rate in volume from Poland stood at +7.0%. The remaining supplying countries recorded the following average annual imports growth rates: the Netherlands (+3.0% per year) and China (+1.2% per year).

In value terms, Poland ($199M) constituted the largest supplier of candles and tapers to Germany, comprising 46% of total imports. The second position in the ranking was occupied by China ($47M), with an 11% share of total imports, and it was followed by the Netherlands, with an 11% share.

The average candle and taper import price stood at $2,504 per tonne in 2020, approximately equating to the previous year. Average prices varied somewhat amongst the major supplying countries. In 2020, the countries with the highest prices were China ($2,875 per tonne) and Belgium ($2,450 per tonne), while the price for Poland ($1,990 per tonne) and the Netherlands ($2,008 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Portugal, while the prices for the other significant suppliers experienced more modest paces of growth.

Source: IndexBox Platform

trade

Take note: Address Global Trade Issues Early in Your Negotiations to Avoid Liability and Costs (Yes, this applies to you).

Premise: Nearly all companies have exposure to international trade laws when doing business. Spotting these risks early when negotiating agreements and transactions will prevent future liability and costs. So, when drafting agreements engaging in mergers or acquisitions, and conducting diligence parties, should be considering a number of important trade risk points that may be sprinkled throughout various business activities.

“Supply chain” is the buzzword right now for a reason, it’s an area where trade liabilities are growing significantly. On top of backups and slowdowns, additional tariffs or duties (import taxes) can make importing from certain locations more expensive than it once was, and more restrictions are being added to this already highly regulated activity. New ESG and human rights restrictions along with an expanding list of prohibited parties make planning a supply chain more challenging than ever. Additionally, if done incorrectly, the penalties associated with customs violations can be quite high, or, in a worst-case scenario, your shipments can also be seized and even destroyed without compensation.

Trade Controls Are Broader Than You Think 

Always screen your transaction for other tangential cross-border issues. If the company is directly or indirectly supplying the U.S. government with goods or services under a procurement agreement, ensure someone has reviewed whether any relevant Buy America criteria are met. Enforcement is on the rise so include proactive requirements for antiboycott compliance and anti-corruption representations in agreements and ensure training is being done as needed for both employees and third parties to decrease the risk of violations. Most trade-related rules and regulations apply to U.S. persons and U.S. companies both directly and indirectly. For example, if a third-party distributor sells your product to a person in Iran without required authorization – you can be liable.

Importing is Getting More Complicated

Before you commit to acquiring, merging with, or working with any business, ensure the security of its supply chain and that it is reporting the correct country of origin, classification codes, and other required information properly. Confirm that it has all relevant IP rights and that there are no infringing marks being used, and determine whether any anti-dumping or countervailing duties might apply to the imported product. If it turns out that additional, high tariffs are due – not only may penalties be imposed, but the government will also demand interest on its unpaid revenue. So, when drafting agreements consider representations from parties to minimize risks of wrong or missing information, changing regulations, and government enforcement cases, limit your liability if possible, and choose INCOTERMS (contract terms that determine which party has responsibly shipped goods at any time during the shipping process) wisely to limit exposure.

Sanctions Apply To all of Your Customer and Supplier Relationships

Like import regulations, U.S. sanctions prohibitions and restrictions are also expanding at a steady rate. To protect yourself and your business in this dynamic and fast-changing environment, ensure that any target companies or business partners already have sanctions compliance programs and are pro-actively complying with economic sanctions and associated mandatory requirements. This is an area in which you want to limit successor and indirect liability, as penalties can be extremely high. You don’t want to learn after the fact that your business partner has been buying inputs from or selling your product to a restricted party in China. So, for your own best interest, take the initiative to educate your partners as needed and get your information and inspection rights regarding the supply chain, indirect sales, and distribution network in writing.

Export Requirements Can Apply in the US Too

Similarly, export laws also carry a specific set of risks and liabilities for exporters. Filing and licensing requirements are complex and the rules apply broadly to all U.S. origin goods and technologies (even online only and SaaS products). Ensure that any target company or potential business partner has determined the correct export classification for its products and technology before you commit to investing, acquiring, or merging. Look out for red flags that products are being transshipped to countries without the proper authorizations. Similarly, if you are going to contract with an agent or distributor, make sure they understand export compliance because your liability does not end when you hand over the product.

Further, export classifications are no longer something companies only need to know if they export physical products to locations outside of the U.S. Export controls is also implicated if you share technology domestically in the U.S. with foreign nationals. and export classification can be a determining factor in whether a CFIUS (Committee on Foreign Investment in the U.S.) filing to the Department of Treasury is required before closing a deal – and this filing requirement may apply regardless of whether the target company exports at all.

Update Your Agreements and Compliance Materials

The government is expanding its enforcement initiatives and broadening its scope of review in corporate criminal enforcement cases. Thus, it is worth your time to slow down and do your homework to avoid bigger problems later. Talk to your Colleagues. Identify whether if you are already addressing these issues, and if not, create a plan to work trade reviews into your regular processes and workflows.

Don’t let simple compliance actions slip through the cracks. If you have compliance materials- read them and ensure they are up to date and are useful to protect the company. If not work with someone familiar with the risks and the law to update, retool, or enhance them.

Make your materials practically employable, set a tone at the top that compliance procedures are taken seriously, and ensure your standard agreements include trade provisions to minimize your risk. Once you’re comfortable that you have a solid compliance program or transaction checklist well-tailored to your business activities, complete an internal audit at set intervals to make sure that it’s being used and working.

Addressing trade risks before closing a transaction or signing a contract may save you not only from headaches but from getting to know the U.S. authorities all too well.

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Abbey Baker, counsel at Lowenstein Sandler LLP, works with businesses and entrepreneurs seeking to expand their market position in the global economy while considering national security, trade regulation, and foreign policy concerns.

Doreen M. Edelman is the chair and founder of the Global Trade & Policy practice. She has more than 30 years of experience advising clients on the risks associated with export controls, customs matters and U.S. sanctions in cross-border M&A and investment transactions, and on the compliance requirements pertaining to technology, software, defense articles and services, and commercial goods.

drivers

Moving Forward: The Critical Need to Support Truck Drivers

“Disruption” may have been 2020’s word of the year. Both the coronavirus and the economy impacted lives, leaving no industry untouched. When the nation’s GDP hit bottom in Q2 2020, it essentially wiped out any economic gains generated over the previous five years.

While the trucking industry was affected by logistics and supply chain issues and personnel shortages last year, many analysts have predicted a strong recovery. Since mid-year last year, freight demand has continued to regain its momentum. Trucking companies still face several challenges, however, the greatest of which is its long-standing struggle to recruit, train, and retain enough professional drivers to meet demand.

The economy’s recovering — but driver shortages remain

According to the latest ATA survey on driver turnover, rates:

-Fell to 87% in Q1 2021 from 90% in 2020 at large for-hire truckload carriers ($30M+ annual revenue).

-Increased from 69% to 72% at small truckload carriers.

-Increased to 18% from 13% in the less-than-truckload (LTL) sector.

American Transportation Association (ATA) chief economist Bob Costello said, “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”

Even though the market is in an upturn, ATA’s most recent survey found carriers reluctant to grow their fleets. Fleet sizes have decreased 6% for large carriers, 4.9% for small carriers, and 0.9% for LTL.

In the American Transportation Research Institute (ATRI)’s Critical Issues in the Trucking Industry 2020 report, respondents recommended several strategies to help strengthen the trucking and fleet sector. One strategy includes repealing or reforming ineffective, burdensome regulations negatively impacting the trucking industry. For example, most in the industry have favored adaptations of the Hours-of-Service (HOS) rule.

In 2020, the top HOS strategist advocated for additional flexibility in the sleeper berth provision, allowing a 7-3 split of hours. The U.S. Department of Transportation (DOT) has continued exploring whether to modify HOS rules for highly automated trucks, while the Federal Motor Carrier Safety Administration (FMCSA) is conducting research to “increase understanding of the human factors and address specific areas such as driver readiness.”

DRIVE-Safe Act

This bipartisan legislation could help to address the looming driver deficit, which is projected to reach 160,000 or more by 2028. Continued growth in freight demand combined with anticipated retirements could result in the industry needing to hire 1.1 million drivers over the next 10 years — or almost 110,000 drivers each year.

The DRIVE-Safe Act introduces a rigorous two-step apprenticeship program. It would allow younger drivers (between ages 18 and 20) to apply and train to drive trucks. Candidates complete at least 400 additional training hours, and an experienced driver would accompany apprentices on the road. These drivers-in-training would be required to drive trucks equipped with the latest transportation management software and safety technology like:

-Active braking collision mitigation systems.

-Forward-facing event recording cameras.

-Speed limiters set at 65 MPH or less.

-Automatic or automatic manual transmissions.

Meeting demand

The trucking industry continues working to meet demand. 2020 saw a 36% increase from 2019 in the number of entities (almost 58,000) to which FMCSA granted carrier authority. But the pandemic has lengthened the time needed to train and license new drivers. An additional 54,000 drivers became ineligible once the new FMCSA Drug and Alcohol Clearinghouse launched last year.

One solution to attracting and retaining more drivers includes increasing pay, which has increased dramatically recently. Fleets of all sizes now offer rolling pay increases and even signing bonuses of $10,000 or more. Ironically, pay increases may be contributing to the driver shortage, because some drivers earning more have chosen to drive fewer hours.

While long-haul trucking jobs have high turnover rates — a metric many point to as the reason for the driver shortage — this trend wasn’t caused by high employee dissatisfaction but rather the drivers themselves bouncing between companies.

Attracting (and keeping) drivers

Trucking companies and fleets have turned to a variety of strategies to combat the driver shortage, including increased pay and sign-on bonuses. But it isn’t just higher salaries. Drivers want more control over their workdays and environments. One tactic to help drivers achieve the balance they desire? Workflow software and route optimization.

Technology adoption has driven efficiency gains within the trucking industry as more trucking companies have embraced digital transformation. It isn’t just shifting office staff from in-person to remote work or using video conferencing to communicate. Fleets use data analytics to improve utilization. Contactless payment systems and electronic bills of lading have reduced touchpoints and friction.

Trucking software helps fleets more efficiently track drivers, manage dispatch records, monitor interstate fuel tax agreement (IFTA) reports, optimize driver routes, pay invoices, save fuel costs, track vehicle maintenance records and more.

Fleet management platforms also help drivers work smarter, not harder. The cloud-based software and accessible data allow fleet managers to analyze information for insights to optimize driver workflow. Mobile ELD and workflow solutions empower drivers to more effectively manage work processes and routes, setting them up for success by taking the guesswork out of compliance and reducing frustration, uncertainty and inaccuracy.

Truck drivers are essential workers and critical for sustaining a functioning economy. The pandemic highlighted not just their importance, but the importance of the transportation and supply chain industries, too. As the pandemic ebbs, the world rebalances and the economy continues its recovery, fleets and trucking companies will continue to make their deliveries and transport goods from coast to coast.

Implementing the tools of digital transformation — like driver workflows and other fleet management software — will prove to be another useful tactic for attracting and retaining drivers, ensuring their safety, and empowering drivers to simplify their daily workload and operate more productively, while still achieving high-performance standards.

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Avi Geller is the founder and CEO of Maven Machines. Since 2014, Avi has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but started Maven in Pittsburgh, Pennsylvania due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi also has an engineering degree from MIT and an MBA from Northwestern University.

holiday

Prep for the Holiday Season with Top E-commerce Strategies

The most wonderful time of the year…is here. You already know that the holiday shopping season is the most critical period for retailers, both online and brick and mortar. How your business does during the last quarter of the year determines where things land for your bottom line.
 

This year, though, brand and e-commerce marketing managers are facing another wild ride, with uncertainty created by shifting trends. The pandemic brought on a surge in online buying, and many buyers are likely to continue to buy online. In fact, according to September 2021 survey data, consumers are planning a 50/50 split between online and brick-and-mortar buying. The retail giants—Amazon, Target, and Wal-Mart—are already capitalizing on convenience to hold onto their share of wallet.

 

There are other factors, though, to consider. Shopping trends are changing fast. News of supply chain pressures and worldwide shipping delays has spurred many shoppers to buy early or shift their buying behavior — 83% of shoppers intend to start before Thanksgiving this year, in a departure from the norm. In such an unpredictable market at such a high-stakes time of year, business intelligence has never mattered more. This is where the performance analytics platform Line Item can be the lifeline e-commerce marketers need right now to ensure they make the most of the holiday season.As we head into the heart of the 2021 holiday season, here are a few strategies to prepare and protect your digital shelf for the upcoming holidays.

Focus on organic search ranking. Whether they’re buying online or in person, many shoppers start their research online—on a smartphone or a tablet. This is why it’s essential to monitor and improve your online search ranking. Watch where you’re showing up, too. Moving from page 2 to page 1—and even into the top 10 listings—can significantly boost your sales. Improving your organic search ranking depends on visibility into what’s working—or not—for your brand. This is where Line Item can help, with detailed insight into what changes you could make to content, product descriptions, or imagery to affect your ranking in organic search results.

Analyze your paid search strategy. Shoppers are pressed for time, and you have only seconds to capture attention when it comes to search results. The holiday season is the time to invest in a robust paid search strategy, but you’ll want to be sure you understand what product attributes drive value. This is where Line Item can give you valuable campaign-level and product attribute insights. With them, you can better understand what’s driving the market and what your competitors are doing, so you can sharpen your edge and see ROI from a page-1 slot.Ensure your product detail pages are complete. This is a biggie. Incomplete or inconsistent product detail pages can harm you, whether we’re talking about Amazon listings or your own website. Across your e-commerce portfolio, all product detail pages should be complete, correct, and compelling. Line Item can help with this to make sure you aren’t overlooking clear areas or gaps that prevent you from meeting category bestseller benchmark standards.

Evaluate your SEO strategy and campaigns. During this volatile time of year, whims and demand drive the market in unpredictable ways. And that’s during a typical season, which 2021 is anything but. It’s essential to drill down to campaign elements, including CPCs, to ensure you have a read on how changing demand, sudden interest, or seasonality might be driving spend. E-analytics insight from Line Item can help you ensure your campaigns are profitable and that your overall marketing spend ultimately drives return on investment.

Watch out-of-stocks closely. Maintaining optimal inventory is key to profitability. When a customer is ready to buy and your product is out of stock, you lose the sale—and maybe the customer, too. Line Item helps you determine if out-of-stocks are hurting your revenue.

Track pricing. Many retailers are introducing new pricing strategies to drive sales this holiday season. Buy Now Pay Later is one of these, and it can appeal to segments like Gen Z and the unbanked, both of which are more price sensitive. The major retailers have already rolled out BNPL options; some have been in play since 2019. BNPL can affect pricing, so it’s important to monitor this. With Line Item, you can verify item pricing, selling price, and list price across platforms, ensuring that products are priced correctly even with new options like BNPL, and you can easily monitor third-party and competitor activity to protect your brand and products.

Of course, there are other strategies to consider, too—best practices like:

-Ensuring your checkout process is as easy as possible

-Providing access to customer service with tools like live chat, and with quick responses

-Creating engaging content, like gift guides

-Using targeting and segmentation to create personalized email campaigns

-Boosting sales with savvy retargeting

Using updated visuals and copy for featured holiday campaigns, and to ensure your site and product pages have that holiday look and feel, and more

This holiday season may be full of surprises, but your performance shouldn’t be one of them. The right insight can make or break your brand this holiday season, and business intelligence can give you what you need, when you need it. This is where Line Item really stands out as a single platform with insight into shopping trends and behavior, and what your competitors are doing—so you can finish 2021 in the black.


transportation

Transportation Solutions for Retail Companies

One of the most headache-inducing tasks in the retail sector is undoubtedly transport management. The increasing complexity of flows between suppliers, warehouses, stores, end customers and, of course, the inevitable returns. This can create a nightmare universe for those responsible for coordinating the transportation area, but, above all, it can open a gap through which the company’s profitability is lost surprisingly quickly.

It is normal for the retail industry to face daily fluctuations and changes in its transportation needs, and in these conditions, having an effective Transportation Management System (TMS) solution is what makes the difference between companies that can always track and manage the movement of their goods and those that continue to blindly trust that everything will go according to plan.

Transportation technology as a lever of value

As companies realize the importance of transportation and its direct impact on business results, TMS technology solutions are emerging as key tools to help improve the customer experience, increase the efficiency of their shipments to stores and reduce costs in their transportation network.

Download Our TMS Product Sheet

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A TMS facilitates route and load optimization, contract writing, order tracking and shipment notifications so that not only is uncertainty reduced, but decisions can be made and executed in real time based on available information.

Multi-collection, multi-delivery, optimization of resources in terms of volume, weight and optimal mileage are unavoidable needs for a retailer who wants to stay in the market and not be left behind. As if all these day-to-day difficulties were not enough, Covid-19 has introduced more variability, uncertainty and difficulties in planning or maintaining fixed routes, so the flexibility provided by a TMS now takes on vital importance.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This originally appeared here. Republished with permission. 

expansion

COVID-19 Introduced a Backdrop of Uncertainty, But Also Opportunity: How Businesses Can Navigate International Expansion

The global pandemic has reminded us all of how inter-connected the world is. As countries emerge from the global health crisis, and economies show steady signs of recovery, companies with global exposure are increasingly optimistic about opportunities outside their home markets, despite a number of headwinds. Expanding a business beyond one’s domestic market requires long-term planning, utilization of complex global supply chains, managing risk exposures and being nimble enough to flexibly respond to changing market conditions.

The results of J.P. Morgan’s 2021 Business Leaders Outlook (BLO) survey highlight how leaders are adjusting to this new environment—and finding opportunities to grow globally despite the current challenges.

In the survey, most midsize U.S. businesses are optimistic, even as they plan for continued unpredictability. Having learned in 2020 how to manage well remotely and deal with disrupted supply chains, U.S. business leaders are staying the course; global expansion plans remain at the same levels from pre-pandemic years. Most project continued steady sales growth outside their home market. This indicates the confidence they have gained from pivoting throughout the year, including accelerating technology adoption, increased digitization of core processes and managing global ventures with much less in-person travel.

Ultimately, the rollouts of COVID-19 vaccines continue to be a core component impacting the global growth outlook for businesses. In addition, geopolitical events, new trade and investment policies and continuously changing business regulations will continue to challenge business leaders seeking sustained profitable international growth.

Why Expand Globally in This Climate?

With issues such as labor shortages, severe bottlenecks in global supply chains and evolving customer expectations, it can be discouraging to consider international expansion at this time. However, according to the survey, executives remain optimistic. Those surveyed cited access to new customers/markets (72%), better opportunities to serve domestic customers with global operations (37%) and access to suppliers/materials (34%) as key reasons for expansion.

The pandemic will not deglobalize the business landscape. Business leaders have tried-and-tested remote workforces, seen governments become more flexible with business applications, and they have been leveraging new approaches and technologies to keep their business moving forward. In short, they have experience under their belt, have a long-term vision and see opportunity in international expansion—and are not letting the pandemic stand in the way. After all, adapting is what business is all about – and recognizing that extraordinary environments demand tailored strategies based on an accurate reading of market opportunities.

The World Has Changed: Three Key Strategies For Navigating International Expansion

1. Developing Strategic Partnerships & Understanding Trade Policy

Trade barriers and tariffs were cited as the top international business concern for globally-active middle-market companies in the 2021 Business Leaders Outlook survey. Complying with local regulations and the intricate differences in policy between nations can be overwhelming and time-intensive. Any little error may lead to wasted time or resources, complications, and added expenses. Developing strategic partnerships with businesses, banks, and vendors—those who already have the local intel—goes a long way in effective global expansion.

The many cultural nuances and varying consumer preferences by country also benefit from local expertise. Furthermore, the insight around local competition and market opportunities is more easily obtained through these kinds of partnerships, especially when acting quickly is critical to success.

Increasing global political changes in recent years that are challenging the status quo require extra diligence in this environment.  Additionally, the economic reforms underway in many developing countries are impacting both the volume and direction of foreign investment. We especially see this in China, India, Southeast Asia, Latin America and parts of Europe. For businesses navigating expansion in countries experiencing political and economic reform, it’s important to consider the impact these governments will have on fiscal, monetary, regulatory and foreign policy—and how significantly or quickly this may affect foreign investment opportunities.

As a positive example for businesses in North America, the United States-Mexico-Canada Agreement (USMCA) brought timely improvements to trade relationships in today’s volatile landscape. The USMCA has the potential to offer more certainty and a stronger safety net for trade and investment by promoting fairer trade and robust economic growth.

2. Investing in Technology & Digitization

Trade finance is the nucleus of the day-to-day global economy. It supports every stage of the global supply chain and ensures that buyers receive their goods and that sellers receive their payments. Yet the world faces a massive and persistent trade finance gap. The World Trade Organization estimated between 80% to 90% of global trade relies on trade finance, yet there was a $1.5 trillion gap between the market demand and supply before the pandemic.  That gap has only increased since 2020.

COVID-19 accelerated a transformative period for trade finance, primarily through digitization. The global challenge with trade finance centers around inflexible business models, paper-based and tedious processes, regulatory constraints, and outdated legacy systems.

Technology can help bring down operational costs while also increasing efficiencies, encouraging new revenue opportunities, optimizing resources, enhancing the recruiting process…the list goes on. Businesses are investing heavily in digital transformation, with cloud-enabled technology becoming the new standard of operation. This brings immense advantages, including the immediate ability to access data and machine learning (ML) with virtually unlimited computing power, in a split second. The value of AI and ML can clearly be seen across business functions including trading, risk management, marketing and operations. It enhances outcomes by streamlining processes and increasing overall efficiency.

Additionally, blockchain—a highly secure, decentralized digital record of transactions—offers a multitude of international trade-related applications, bringing high security, automation and traceability to important finance functions.

3. Streamlining Supply Chains

More than ever, managing global supply chains has become a critical skill for companies expanding internationally. Surging demand with various bottlenecks has disrupted global goods transportation and logistics. Gaining visibility over cross-border supply chains, while meeting profitability goals and evolving needs of customers, is an ongoing obstacle for most business leaders. Streamlining the global supply chain and focusing on visibility can lead to increased efficiencies throughout the entire production/solution life cycle. It entails optimizing processes by improving the accuracy of demand forecasts and schedules and improving production lines to reduce costs. This can help make businesses more agile and profitable. Secure data integration is also critical, so information can be shared across channels swiftly and seamlessly.

While concerns around tariffs and trade barriers again led the list of business leaders’ global concerns in the 2021 survey, managing global supply chains overtook currency risk for the second spot. Instead of focusing on the next crisis scenario—whether it be a pandemic, natural disaster, or cyber attack—business leaders must continue their focus on making global supply chains more resilient for future disruptions.

The Road Ahead: Global Outlook Optimistic for Well-Prepared Business Leaders

The overall global business outlook is optimistic, with 66% of leaders in the 2021 survey expecting their international sales to increase in the next five years. U.S. midsized, multinational businesses know that sustained growth requires access to new customers in new markets. That won’t change. However, today’s increasingly complex landscape will require greater investments in digitized products and processes, more customized local solutions in widely different international markets, and leveraging the expertise of reliable partners to understand the nuances of operating in challenging foreign markets. At the top of the list is having effective market entry and supply chain strategies, supported by a strong understanding of trade and investment policy to help shape your global market expansion.

antibiotic exports

China’s Antibiotic Exports Soar to Record $3.7B

IndexBox has just published a new report: ‘China – Antibiotics – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

Antibiotic exports from China, the largest supplier worldwide, peaked at $3.7B in 2020. Over the past decade, China’s exports steadily grew at an average annual rate of +2.5%. India, the Netherlands and Viet Nam constitute the leading importers of antibiotics from China. Viet Nam recorded the highest growth rate of import value from China over the past decade. Last year, the average antibiotic export price amounted to $44,258 per tonne, increasing at an average annual rate of +4.4% from 2010 to 2020.

China’s Antibiotic Exports

In value terms, antibiotic exports rose from $3.6B in 2019 to $3.7B (IndexBox estimates) in 2020. The total export value increased at an average annual rate of +2.5% from 2010 to 2020.

In physical terms, antibiotic exports from China declined modestly from 100K tonnes in 2010 to 84K tonnes in 2020. Last year, exports waned by -4.2% on the previous year. China remains the world largest antibiotic exporter, accounting for 54% of the global volume.

India (23K tonnes) was the leading destination for antibiotic exports from China, accounting for a 27% share of total exports. Moreover, antibiotic exports to India exceeded the volume sent to the second major destination, the Netherlands (6.1K tonnes), fourfold. The third position in this ranking was occupied by Viet Nam (3.9K tonnes), with a 4.7% share.

In value terms, India ($986M) remains the key foreign market for antibiotic exports from China, comprising 27% of total exports. The second position in the ranking was occupied by the Netherlands ($216M), with a 5.8% share of total exports, and it was followed by Viet Nam, with a 3.9% share.

From 2010 to 2020, the average annual growth rate of value exported to India (+0.6% per year) was relatively modest. Exports to the other significant destinations recorded the following average annual rates of growth: the Netherlands (+7.4% per year) and Viet Nam (+8.4% per year).

In 2020, the average antibiotic export price amounted to $44,258 per tonne, increasing by +7.6% against the previous year. In general, the export price indicated a noticeable increase from 2010 to 2020, rising at an average annual rate of +4.4% over the last decade.

There were significant differences in the average prices for the major export markets. In 2020, the country with the highest price was South Korea ($80,132 per tonne), while the average price for exports to Indonesia ($28,191 per tonne) was amongst the lowest. In 2020, the most notable growth rate in terms of prices was recorded for supplies to the U.S., while the prices for the other significant destinations experienced more modest paces of growth.

Source: IndexBox Platform

compliance

U.S. Export & Reexport Compliance for Canadian Operations

January 25 – 27, 2022 | Toronto, ON + Livestream Option Available

The Canadian Institute (CI) and the American Conference Institute (ACI) invites you to attend the 11th Annual Forum on U.S. Export & Re-Export Compliance for Canadian Operations in Toronto, ON on January 25–27, 2022!

Over the last decade, this acclaimed event has gathered senior U.S. and Canadian government officials, as well as legal and compliance experts from aerospace, defense, technology, satellite, space, telecom, energy, logistics, and many more industries. CI/ACI are excited to host this event in-person this year (following all local Covid measures) to give a chance for attendees to network once again in-person. The event will also be live-streamed to give a wider audience a chance to access the expertise and updates shared by CI/ACI’s speaker faculty.

As in past years, the 2022 agenda will focus on the most complex issues posed by the interplay of U.S. and Canadian export/re-export controls, as well as the nuances of applying U.S. requirements to the Canadian context.

HERE ARE YOUR TOP 5 REASONS TO ATTEND:

1. Hear directly from key government decision-makers.

2. Benchmark with leading exporters through audience polling and structured breakout conversations.

3. Stay in the loop on critical development in Canada and the U.S.

4. Gain best practices for navigating compliance risks that are unique to the Canadian context.

5. As the only event of its kind in Canada, this is your best chance to expand your network and brain trust.

Don’t miss the only comprehensive event for the export and re-export compliance community in Canada!

Register now to take advantage of early rates! SAVE 10% with Global Trade Magazine Code: D10-856-856BX01.

Online: https://bit.ly/3kEgKx2

Email: customerservice@canadianinstitute.com

Phone: 1-877-927-7936

Accessible hazard

Creating an Accessible Warehouse for Workers with Disabilities

The warehousing industry faces a growing labor shortage, yet many facilities are overlooking a ready and willing workforce. According to the Bureau of Labor Statistics, just 19.3% of people with disabilities are currently employed. At the same time, 877,400 people with disabilities are actively looking for work.

These workers could help warehouses become far more productive, but the facilities need to become more accessible first. Accessibility issues are common in the industry, and they stand in the way of hiring these eager employers. With that in mind, here are seven ways warehouses can become more accessible for those with disabilities.

Customize Mobile Computers

Mobile computers are some of the most important tools in the warehousing business. Despite how crucial they are to the job, many facilities may not be getting all they can out of them. Their default settings may limit their accessibility, leading to errors and inefficiencies.

For example, the text on these devices’ displays is often small, and scanning distances are short. This can make it difficult for workers with visual impairments to read correctly and lead to discomfort for those with restricted mobility. Using computers with longer scan distances and customizing them to show larger text will solve these issues.

Text-to-speech options, high-contrast displays and customizable color coding are other personalizations that could make these tools more helpful. When they’re easier to use for more workers, picking and related processes will accelerate.

Employ Robotic Assistance

Another way to make warehouses more accessible is to capitalize on automated systems. Some tasks, like picking items off high shelves or moving heavy materials, may be too physically strenuous for some workers. Automating them, at least in part, can open these tasks up to a broader workforce.

Musculoskeletal disorders (MSDs) account for one-third of all worker injuries and illnesses and often come from overexertion. If workers have a disability that limits their mobility, they’re at even higher risk of these injuries. Automating processes likely to cause MSDs would then make workplaces significantly safer and more efficient.

Automated guided vehicles or powered forklifts could also help workers with disabilities move materials throughout the warehouse. As an added benefit, these technologies make workflows faster as well as more accessible.

Rethink Shelving

Some facilities may need to reorganize or redesign their shelving systems. If items are too high or too low, workers may need to bend over or reach above their heads to retrieve them. While some exercises can improve flexibility by 25%, these actions can still be hazardous, especially for workers with disabilities.

The most frequently picked items should be between waist and chest height. That way, workers can reach them without overextending themselves. Shelves can use automated retrieval systems to grab higher-up items to make the most of vertical space. Alternatively, facilities could implement mezzanine racking.

Mobile shelves that shift to meet workers according to their specific needs could also help, though these may be more expensive.

Replace Stairs

Capitalizing on vertical space is one of the best ways to optimize warehouse layouts, but it poses a problem. Stairs are an obstacle for workers with some disabilities, so they limit who can access which items. As a result, they can hinder a facility’s productivity, keeping it from getting the most from the whole workforce.

Stairways are unavoidable, but warehouses can replace some of them with ramps. Some facilities may be able to install elevators as well. These options are more accessible, letting any worker reach higher-level items if necessary.

In addition to making warehouses more accessible, traveling up a ramp is often faster. They also allow for more vehicle traffic between levels, making automation more efficient.

Provide Wheelchair-Friendly Transportation

If warehouses have company vehicles for employees to use, they should consider wheelchair-friendly options. These cars are of limited utility if not every employee can drive them. Adding at least one wheelchair-friendly vehicle makes them more useful.

In today’s market, warehouses have plenty of options for wheelchair-friendly transportation, too. Companies can outfit most vehicles with hand controls, and multiple systems exist for helping wheelchair users into the driver’s seat.

Having an accessible company vehicle could also improve worker morale. When employees show they appreciate their workplace, they’ll be more productive as a result. Warehouses and their workers will benefit all around from these changes.

Enable Multiple Picking Methods

Picking is often one of the most inefficient processes in a warehouse. Similarly, it’s also one of the most frequently inaccessible for workers with disabilities. One of the ways to address this problem is to use multiple systems that account for everyone’s needs.

As mentioned earlier, some mobile computer displays can be challenging to read. Pick-to-light systems could replace text-based solutions, guiding workers to the correct items without reading a small, possibly low-contrast screen. These systems also typically improve pick rates by 30%-50%, so they offer multiple benefits.

Voice picking systems are another alternative. Offering voice, light and traditional systems will let workers use whichever works best for them. That way, no matter what conditions an employee deals with, they can work efficiently.

Keep Aisles Wide and Open

Many warehouses reduce their aisle space to accommodate more shelves. However, this can make facilities less accessible for workers with some disabilities. Keeping them open allows for smoother traffic and easier picking.

If aisles are too narrow, workers with wheelchairs may not be able to pass through if there’s another employee there. Similarly, those that need to use robotic assistance tools may not have room to maneuver. Making aisles wider lets any people and machinery pass through more easily, removing this barrier.

Wider aisles also let workers pick items off low or high shelves without taking up as much of the path. That way, more employees can reach objects without impeding the productivity of others.

An Accessible Warehouse Is a Productive One

When warehouses become more accessible, they can welcome more workers with disabilities. This benefits both parties, giving people a source of income while helping employers overcome persistent labor shortages. Facilities that already have disabled employees can help prevent injury and become more productive, too.

Changes like these let employees work more efficiently and safely. As a result, overall morale and productivity will improve. No matter what a warehouse’s workforce looks like now, improving accessibility could boost their efficiency.