Trending Now

US Intermodal Gains Momentum Amid Trucking Challenges

New Articles

New Regulations to Boost Investments into Battery Recycling in the EU

battery
Archives, Global Trade Daily, News

New Regulations to Boost Investments into Battery Recycling in the EU

Leave a comment

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

The battery market in the EU is expanding on the heels of growth in the electric vehicle and renewable energy industries. In July 2021, the EU instituted new regulations that force battery producers to diminish greenhouse gas emissions throughout all stages of the product lifecycle. Increases in mandatory levels of recovered batteries and the share of recycled materials used in new ones will lead to a critical need for additional recycling capabilities and could drive an investment boom in the market.

Key Trends and Insights

The Global Battery Alliance projects that by 2030 worldwide demand for batteries will increase 14 fold due to the widespread implementation of electric transport methods and deployment in electricity grids. The EU may account for 17% of global demand. In 2030 demand for lithium batteries is forecast to surpass the current amount by a factor of 18, cobalt by 5 and in 2050 by a factor of 60 and 15 respectively.

In July 2021, the EU implemented new regulations to ensure safe use, recycling and disposal of batteries. These regulations could lead to serious changes in the accumulator market. From July 1, 2024, producers selling batteries in the European market will have to provide declarations indicating the carbon footprint created throughout production. Then from July 1, 2027, they must comply with maximum lifecycle carbon footprint thresholds for their products. This will push expenses for producers up as they implement technologies to reduce greenhouse gases. To help companies stay competitive, the new regulations outline developing a plan where governments are obligated to purchase products manufactured with green technologies.

In Europe, over 1.9 million tonnes of waste batteries are generated annually. The current level of recycled materials in the EU is significantly low: only 12% of aluminium, 22% of cobalt, 8% of manganese, and 16% of nickel used within the EU is recycled. Currently, almost no lithium is recovered in the EU because it is deemed to not be cost-effective.

In accordance with the new regulations, targets are set for recovering metals from waste batteries at 90% for cobalt, copper, lead, and nickel, and 35% for lithium by the end of 2025. By 2030 the recovery level should reach 95% for cobalt, copper, lead and nickel, and 70% for lithium. This will require a significant increase in capacity to recycle batteries and thus provide new opportunities for investors. The sector for lithium is one the fastest growing areas and is forecast to expand by 30% annually, experiencing the highest level of demand for recycling capacity.

Electric Accumulator Imports in the EU

In 2020, approx. 1.2B units of electric accumulators were imported in the EU; with a decrease of -8.1% against the previous year’s figure. In value terms, accumulator imports soared to $23.1B (IndexBox estimates) in 2020.

Germany represented the largest importing country with an import of about 386M units, which finished at 33% of total imports. It was distantly followed by Poland (199M units), Hungary (168M units), the Netherlands (96M units), France (65M units) and the Czech Republic (58M units), together achieving a 49% share of total imports. Italy (37M units) followed a long way behind the leaders.

In value terms, Germany ($7.5B) constitutes the largest market for imported electric accumulators in the EU, comprising 32% of total imports. The second position in the ranking was occupied by France ($2.4B), with a 11% share of total imports. It was followed by the Netherlands, with a 6.8% share.

In 2020, the average annual rate of growth in terms of value in Germany totaled +48.6%. The remaining importing countries recorded the following average annual rates of imports growth: France (+1.6% per year) and the Netherlands (+3.4% per year).

The accumulator import price in the EU stood at $20 per unit in 2020, growing by 43% against the previous year. In 2020, the most notable rate of growth in terms of prices was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

European Imports of Primary Cells and Primary Batteries

Germany represented the major importing country with an import of around 3.1B units, which amounted to 33% of total imports. It was distantly followed by Poland (1,470M units), Belgium (743M units), Romania (624M units), France (605M units), the Netherlands (495M units), Italy (474M units) and Spain (452M units), together constituting a 52% share of total imports.

In value terms, Germany ($534M) constitutes the largest market for imported primary cells and primary batteries in the European Union, comprising 23% of total imports. The second position in the ranking was occupied by France ($238M), with a 10% share of total imports. It was followed by Poland, with a 10% share.

In Germany, the value of battery imports declined by an average annual rate of -2.3% in 2020. The remaining importing countries recorded the following average annual rates of imports growth: France (+10.3% per year) and Poland (+22.0% per year).

Source: IndexBox Platform

rubber
Archives, Global Trade Daily, News

Rising Output to Calm Down a Price Rally on the Global Natural Rubber Market

Leave a comment

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

In the beginning of 2021, demand for natural rubber spiked and prices for rubber increased due to a quick rebound in China’s tire manufacturing and the heightened need for latex gloves during the pandemic. Rubber production is projected to climb up this year in line with rising demand, slowing down the price growth. There is a risk that droughts in Malaysia, Thailand and Indonesia will create a supply shortage in the market and enable the prices to soar again.

Key Trends and Insights

According to the Association of Natural Rubber Producing Countries (ANRPC) and the Malaysian Rubber Board (MRB), global demand for natural rubber will grow by 7% y-o-y in 2021. This gain will be possible due to heightened demand from the rebounding rubber and tire industries as well as the increased need for latex gloves due to the pandemic. Production is projected to rise by 6% and balance out supply and demand and as a result, maintaining prices stability. At the same time, there is a risk that possible droughts in Malaysia, Thailand and Indonesia could prompt a decrease in rubber tree yield and threaten a shortfall in the market.

At the beginning of 2021, renewed demand from the rubber and tire industries in China caused prices for natural rubber to skyrocket. According to the World Bank, in May 2021 the average price for Rubber RSS3 reached $2.29 per kg, surpassing the 2020 yearly average of $1.73 per kg. The price for Rubber TSR20 rose to $1.69 per kg with a yearly average of $1.33 per kg in 2020.

Unlike in China, the U.S. is experiencing a slower recovery in the tire industry but the rebound will also bolster the global market for natural rubber. The U.S. Tire Manufacturers Association predicts that as of year-end 2021, shipments of tires in the U.S. will grow by 4.1% in comparison to 2020 but their overall amount won’t reach 2019 levels.

High demand for latex gloves during the pandemic will be one of the key factors leading to expansion for the natural rubber market this year. In 2020, a shock in demand caused latex gloves and medical equipment exports from Malaysia to increase by 95.3%. As the pandemic winds down, this element will gradually recede into the background but should remain influential for at least another few years.

Global Natural Rubber Consumption

The global natural rubber and gum market rose sharply to $24.1B in 2020 (IndexBox estimates), increasing by 7.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, indirect taxes, intermediary margins, which will be included in the final consumer price).

The countries with the highest volumes of natural rubber and gum consumption in 2020 were Thailand (4.6M tonnes), Indonesia (3.5M tonnes) and China (1.4M tonnes), with a combined 60% share of global consumption. Malaysia, Viet Nam, India and Cote d’Ivoire lagged somewhat behind, together comprising a further 26%.

From 2012 to 2020, the most notable rate of growth in terms of natural rubber and gum consumption, amongst the key consuming countries, was attained by Cote d’Ivoire, while natural rubber and gum consumption for the other global leaders experienced more modest paces of growth.

In value terms, Thailand ($6.1B), Indonesia ($5.2B) and China ($1.8B) constituted the countries with the highest levels of market value in 2020, together accounting for 54% of the global market. Malaysia, India, Viet Nam and Cote d’Ivoire lagged somewhat behind, together comprising a further 24%.

The countries with the highest levels of natural rubber and gum per capita consumption in 2020 were Thailand (65 kg per person), Malaysia (38 kg per person) and Cote d’Ivoire (28 kg per person).

Global Natural Rubber Imports

In 2020, purchases abroad of natural rubber and gums decreased by -0.2% to 1.6M tonnes. In value terms, natural rubber and gum imports amounted to $1.8B in 2020.

Malaysia (701K tonnes) and China (570K tonnes) prevails in natural rubber and gum import structure, together constituting 77% of total imports. The following importers – the U.S. (37K tonnes) and the Netherlands (25K tonnes) – each finished at a 3.8% share of total imports.

In value terms, China ($634M), Malaysia ($629M) and the U.S. ($52M) appeared to be the countries with the highest levels of imports in 2020, with a combined 75% share of the global imports.

Source: IndexBox Platform

contact lenses
Archives, Global Trade Daily, News

5 Crucial Trends Set to Influence Contact Lenses Market Outlook

Leave a comment

The growing geriatric population coupled with an increasing prevalence of visual defects across the world are some factors responsible for the expansion of the overall contact lenses market size. The increased occurrence of vision impairments across the world can evidently be cited by the 2018 WHO report which suggested that approximately 1.3 billion people were diagnosed with some kind of eye disorder.

On that note, according to Global Market Insights Inc., the contact lenses market is speculated to exceed USD 14 billion by the end of 2025.

Here are some trends that are expected to boost contact lenses market size from 2019 to 2027:

Growing adoption of hybrid lens

A hybrid lens is the combination of a soft lens and an RGP lens. These lenses provide a fine balance of clarity and comfort, owing to which the hybrid lens segment is touted to proliferate at a rate of 5% over the projected timespan. Hybrid lenses are primarily used by patients diagnosed with presbyopia and astigmatism owing to their large diameters that enable a stable vision. These lenses are also preferred by sportspersons due to their stable positioning even during rigorous physical activities.

Increasing usage of hydrogel material to spur the production of contact lenses

Hypoxia is the condition where the corneal surface of the eye receives less oxygen. Contact lenses made using hydrogel material allow more oxygen flow in comparison to the one with polymer material, thus relinquishing the possibility of hypoxia. Owing to all these factors, the hydrogel material is anticipated to account for an 80% market share by the end of 2025.

Surging penetration of smartphones to benefit online distribution channel

There has been a significant rise in the smartphone consumer base in recent times. This has subsequently paved the way for increased consumption of internet services. Such large-scale penetration has prompted contact lens manufacturers to promote and sell their products on e-commerce platforms. This widens their consumer reach to a greater extent.

Not only that, these platforms offer a premium shopping experience through their websites, and the products are priced competitively. Additionally, online shopping platforms prioritize consumer convenience with prompt home deliveries. Considering all these factors, it is forecasted that over 350 million units of contact lenses would be shifted through these channels by 2025.

Growing prevalence of near-sightedness to stimulate the demand for spherical lens

Globally, a significant number of people are being diagnosed with near-vision impairments like myopia and presbyopia. A WHO report of 2018 suggested that over 826 million were diagnosed with near-vision disorders worldwide. These patients are recommended to use spherical lenses to adjust their vision. In addition, people with low levels of astigmatism are also prescribed spherical lenses. Owing to these factors, the spherical lens is speculated to register a growth rate of above 7% through 2025.

Increasing patient awareness campaigns in North America

The contact lenses market in North America held a market share of 30% in 2018. This sizeable share can be credited to the increasing prevalence of eye disorders in the region. Supporting this statement, data provided by the National Health Interview Survey stated that over 26.9 million American adults are diagnosed with vision impairments.

This has prompted key contact lens manufacturers to initiate awareness programs regarding eye disorders and their treatments. For instance, Essilor Group initiated an awareness campaign for myopia across the United States in September 2018. This campaign addressed the rising prevalence of myopia in the country and provided solutions like using contact lenses for vision adjustment.

cotton
Archives, Global Trade Daily, News

Cotton Prices to Rise Due to the Textile Industry’s Demand Booming Over the Supply

Leave a comment

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

After stagnating during the pandemic, the textile industry has begun to strongly recover and the demand for cotton has risen. It is expected that consumption in 2021 will grow faster than the supply. This will lead to a reduction in global cotton stocks and higher prices. The issues of sustainability and ethical background become increasingly important in the transformation of cotton supply chains.

Key Trends and Insights

With increased demand from the textile industry, global cotton stocks fell to a three-year low. Although cotton production is projected to increase by 5% in 2021, the demand will outpace supply which will raise prices further. In the medium term, the main driver of growth in the cotton market will be the demand for textiles from the growing global population.

According to a recent report by the World Bank, the average price for raw cotton in the first quarter of 2021 was $1.64 per kg, which is 3% higher than the average price in 2020. In the fourth quarter of 2021, prices are projected to rise to $1.72 per kg.

Despite the positive dynamics, cotton production in 2021 will not return to the record levels of 2019. High cotton yields are projected in the U.S. (+523K tonnes), Brazil (+436K tonnes) and Australia (+239K tonnes), Pakistan (+174K tonnes) due to favorable weather conditions and the increasing harvested area. China, on the other hand, will lower cotton production and give way to India as the main producer with a 24% share of the world total.

The highest growth rates for the industry and demand for cotton are expected in Pakistan, India, Bangladesh, Vietnam, Turkey and China. The first four countries mentioned are becoming center points for the global textile industry due to cheap labor. In China and Turkey, the populations’ rising incomes will make production less competitive. It is assumed that domestic production will not be able to fully meet the demand of the industry in China, and the country will have to increase its imports.

Strong competition from other natural and functionally similar materials such as hemp or flax as well as synthetic textile materials will hold back market growth. Hemp is more convenient to grow than cotton as it consumes 5 times less water, while cotton production is considered “environmentally harmful” because it uses large amounts of insecticides. In some countries, forced labor is supposed to be used on cotton plantations. The environmental issues and labor rights violations lead to increased consumer attention to the ethical side of the cotton market. This forces major apparel companies to shift supply chains toward cotton suppliers with a proven and traceable environmental and ethical background.

The issue of creating a cost-effective recycling technology for cotton to be sustainable is now becoming increasingly important. The production of cotton fibers involves a huge amount of water consumption, and cotton recycling will significantly reduce these volumes and maintain the stability of natural water resources.

Cotton Exports by Country

In 2020, shipments abroad of cotton lint decreased by -9.2% to 8.1M tonnes for the first time since 2016, thus ending a three-year rising trend. In value terms, cotton lint exports shrank sharply to $13.1B (IndexBox estimates) in 2020.

In 2020, the U.S. (3.8M tonnes) was the key exporter of cotton lint, comprising 47% of total exports. It was distantly followed by India (965K tonnes) and Brazil (865K tonnes), together achieving a 23% share of total exports. The following exporters – Benin (292K tonnes), Greece (289K tonnes), Cote d’Ivoire (230K tonnes), Burkina Faso (217K tonnes), Nigeria (212K tonnes), Australia (170K tonnes) and Uzbekistan (137K tonnes) – together made up 19% of total exports.

In value terms, the U.S. ($6B) remains the largest cotton lint supplier worldwide, comprising 46% of global exports. The second position in the ranking was occupied by India ($1.4B), with a 11% share of global exports. It was followed by Brazil, with a 11% share.

In 2020, the average cotton lint export price amounted to $1,616 per tonne, shrinking by -6.9% against the previous year. Average prices varied somewhat amongst the major exporting countries. In 2020, major exporting countries recorded the following prices: in Nigeria ($2,222 per tonne) and Uzbekistan ($1,823 per tonne), while India ($1,501 per tonne) and Greece ($1,558 per tonne) were amongst the lowest.

Cotton Imports by Country

In 2020, after three years of growth, there was significant decline in supplies from abroad of cotton lint, when their volume decreased by -16.8% to 7.1M tonnes. In value terms, cotton lint imports contracted sharply to $12.2B in 2020.

In 2020, China (1.9M tonnes), distantly followed by Viet Nam (945K tonnes), Pakistan (819K tonnes), Bangladesh (726K tonnes), Turkey (655K tonnes) and Indonesia (627K tonnes) represented the largest importers of cotton lint, together generating 79% of total imports. The following importers – Malaysia (247K tonnes), India (174K tonnes) and South Korea (115K tonnes) – together made up 7.5% of total imports.

In value terms, China ($3.6B) constitutes the largest market for imported cotton lint worldwide, comprising 29% of global imports. The second position in the ranking was occupied by Viet Nam ($1.4B), with a 12% share of global imports. It was followed by Pakistan, with a 11% share.

The average cotton lint import price stood at $1,706 per tonne in 2020, shrinking by -5.3% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in India ($1,979 per tonne) and China ($1,929 per tonne), while Viet Nam ($1,486 per tonne) and Turkey ($1,519 per tonne) were amongst the lowest.

Source: IndexBox AI Platform

heat pump
Archives, Global Trade Daily, News

3 Major Trends Characterizing Global Heat Pump Market Outlook Between 2020-2026

Leave a comment

The global heat pump market is anticipated to observe heavy growth owing to rising environmental concerns across the globe. In addition, the implementation of heating technologies that are energy-efficient is further likely to shape the market growth over the coming years.

Apart from environmental concerns, the growing installation of reliable and cost-effective heating technologies throughout the commercial and residential sectors is slated to be the major factor augmenting the overall market demand.

Additionally, increasing consumer awareness around energy optimization coupled with growing urbanization across the globe will further proliferate the industry share through 2026. Favorable initiatives introduced by the government along with decreasing component prices are likely to create new business chances for market players, thereby augmenting the overall industry share.

According to a research report by Global Market Insights, Inc., the global heat pump market is projected to exceed 16 million units by 2026.

Below are the top trends that are expected to help the industry reach the aforementioned level of growth.

Favorable regulatory initiatives: 

The heat pump market is slated to observe considerable growth owing to supportive regulatory incentives and schemes globally. In addition, expanding efforts to reduce carbon footprints as well as growing energy prices should majorly outline the market growth through 2026.

Citing an instance, as per the NYSERDA (New York State Energy Research and Development Authority), the new incentive initiated for the whole house system having $1,000 per ton cooling capacity, single-family home is expected to get about $3,000 to $4,000 as financial assistance.

WSHP to gain major traction:

The water source heat pump (WSHP) product segment is projected to observe heavy growth owing to its advantages over ground source or air source heat pumps. In addition, strict regulatory norms to tackle greenhouse gases are likely to outline the water source heat pump’s growth through 2026. These pumps use very little energy as compared to other sources.

The WSHP needs a water source, including rivers and lakes, that are heated by the sun with some support from a small amount of electricity. WSHP boast of a high level of efficiency having a CoP of approximately five, which means each unit of electricity gives five units of heat.

Furthermore, WSHP units don’t need any deep excavations which are required in ground source heat pumps. Longer life and quieter operations are better offered by WSHP units, which should augment their growth in the future.

Mounting deployment across Europe:

The growing need for heating appliances in the residential sector is anticipated to augment the European heat pump market share. Extreme climatic conditions in the region have led to the growth in the sales of heating pumps. The market is projected to observe the growth of more than 5% through 2026. Additionally, heat pumps help in the reduction of carbon footprints, which might add up to their market demand in the future.

Increasing deployment in the residential sector and stringent government norms to curb carbon emission are some of the major factors indicating a definitive growth opportunity for heat pump market players. The competitive landscape of the heat pump market is inclusive of players such as Danfoss, Glen Dimplex, Bosch Thermotechnology, Viessmann, Trane, and Valliant Group among others.

platforms
3pls, Archives, Global Logistics, Global Trade Daily

Collaborative Supply Chain Platforms: Vectors of Customer Satisfaction?

Leave a comment

By providing visibility into the operations of the company, suppliers, and providers, a collaborative platform applied to the Supply Chain enables different stakeholders along the supply chain to better work together. It’s a great asset to control costs, but also to improve customer satisfaction. To what extent is this possible? How can collaborative platforms improve the company’s mission? Generix Group takes stock of the strengths in collaborating to better meet customer expectations.

 

An optimal shopping experience

With the rise of digital commerce, consumers have increased their demands for products and services. To meet these new needs, distributors and online retailers are now required to adapt in terms of SEO and logistics services. Faced with this challenge, collaborative platforms are the solution to help companies to keep the promise made to their customers.

 

Meet needs with a wide variety of options

Accustomed to having diverse and competitive offers, customers today want to be able to choose between multiple products that meet their needs. The logistical challenge for businesses is to offer an extensive product catalog, based on a wide range of suppliers. What is the final goal? – Responding in a diversified way to customer requests and retaining the customer by offering a large selection of products.

Supplier repositories can double or triple, while product choices may grow to five or ten times the number of references. The collaborative portal will therefore automate a large number of operations to avoid a significant increase in management costs.

Most products will never go into storage but will need to be delivered directly by the supplier. Logistics collaboration portals will enable this type of process to be implemented at a lower cost while coordinating cooperation between stakeholders such as customers, suppliers, logisticians, carriers, and service providers.

 

Share product availability

To have an optimal shopping experience, customers need to be reassured at all stages of their order and, if necessary, be able to return a product easily. Faced with these requirements, customer information is a real asset for retailers who must be able to track all logistics operations related to the supply and return of goods. What is the goal here? – To inform consumers in real-time about the stock of available or returned products. With the collaborative platform, collecting stock data throughout the distribution process is made simpler.

 

Describe product features extensively

To be sure that products meet their needs, consumers need to know specific characteristics such as dimensions, composition, features, etc. With a collaborative platform, vendors can collect this data from suppliers more easily and make it available to consumers.

 

Improved visibility of B2B and B2C logistics operations

 

With a collaborative portal, companies can get a consolidated view of the logistics operations carried out at every stage of the Supply Chain including providers, warehouses, and carriers. The collaborative portal ensures the traceability of all operations conducted by each step in the process. Once available, this information can be sent to the final customer to inform them of their order processing (preparation, delivery tracking, etc.).

A B2B customer can benefit similarly from reliable information about their purchases. Informed throughout the supply process, they can improve operations planning and task management.

 

Introducing value-added services

 

Product customization

Through this consumer-friendly mode of consumption, brands can satisfy the need to customize products requested by their customers, while maintaining originality.

 

Delivery scheduling

Through this innovative service, consumers are given the opportunity to select a delivery date and time from a calendar based on their availability. Flexibility and comfort are key.

 

Returning goods

The return of goods is critical in an online purchase and has become an undeniable method of attaining customer loyalty. It contributes to a positive customer experience and can generate upsell when returning to a physical store. For delivery drivers, it’s also a great opportunity to increase the volume of services.

 

By granting further visibility of all logistics operations, collaborative platforms provide numerous advantages for the various Supply Chain stakeholders. These include reducing costs, improving service quality, enhancing general performance, and increasing customer satisfaction. Want to know more? Download our e-book “How and why collaborative platforms have become essential to the Collaborative Supply Chain.”

 

DOWNLOAD THE E-BOOK

 

This article originally appeared on GenerixGroup.com. Republished with permission.

construction
Archives, Global Trade Daily, News

Structural Glazing: A Key Application of Construction Sealants

Leave a comment

Construction sealants have soared into popularity as an indispensable chemical material for waterproofing, flooring & joining, and structural glazing. Recognition of sustainable solutions has given fresh impetus to the construction sealants market. Construction companies are adopting sealants to boost the service life of static joints and provide an effective way to add value to building sustainability without replacing all of the existing building materials.

Contractors are catering to the demands of modern construction norms, focusing on safety and durability as traction towards sealants continues to grow by leaps and bounds. Construction sealant technologies have expanded the scope of architectural designs and bolstered the life of buildings by adding durability and flexibility to joints and materials.

With reduced energy costs come enhanced return on investment and increased resale value. Global Market Insights, Inc., projects construction sealants market size to surpass US$6.5 billion by 2024, partly attributed to the penetration of acrylic and silicone sealants.

Acrylic sealants have become a top-notch solution on the heels of their UV stability feature making them apt for exterior applications. More importantly, sealants are not vulnerable to shrinkage, making the chemical material highly sought-after for jointing, caulking, embedding, and grouting in building construction.

Of late, the footprint of acrylic sealants has become palpable in low movement joints, for sealing construction frameworks, and as an adhesive for bonding. Sealants will be an invaluable product in building facades for aesthetical and perfect finishing.

The rising prominence of silicone sealants

Silicone sealants have gained ground as a durable material that can withstand decay caused by inclement weather conditions, sunlight, or moisture. Not to mention, silicone sealants tend to leverage dramatic glass facades or suspended structures.

Contractors have shown an inclination towards silicone sealants in construction, expansion, connection, and movement joints as they boost flexibility and enable materials to absorb movement and stress triggered by untoward circumstances, such as earthquakes or wind.

At a time when energy efficiency has become the “buzz word” in the construction sealants industry, contractors envisage silicone sealants as an energy-efficient material for buildings to ward off hot or cold air and humidity from coming through cracks and joints. These sealants have an exceptional performance track record in building and construction—silicone was specified for sealing bathrooms within the prestigious apartments for the Burj Khalifa.

Sealant manufacturers are likely to up their investments in silicone to boost adhesion to a range of construction surfaces, UV stability, color stability, and high movement accommodation.

Contractors count on structural glazing through construction sealants. Here’s why

Structural sealant glazing has become popular as a high-performance application to attach metal, glass, or other panel structure of a building. Since the façade is prone to thermal stresses and wind load, structural glazing is expected to maintain cohesive integrity and adhesive.

Construction contractors are likely to cash in on the demand for innovative architectural designs. Structural sealant glazing (SSG) has become ubiquitous, considering its ability to embellish the exterior aesthetics of the façade by enhancing water penetration and uncontrolled air resistance.

SSG façade has become trendier in light of the demand for sealants to provide aesthetics and protect the building from inclement weather conditions, including wind, rain, and UV. The incorporation of SSG provides contractors and architects a level of freedom to do away with the need for covers and exterior retainers.

Needless to say, structural glazing has forayed into storefronts and curtain walls, with the footprint of high-performance silicone sealants becoming more pronounced than ever before.  Silicone sealants will remain pivotal to underpin the curtain wall and seal the building from the elements.

Contractors have also exhibited traction for high-modulus silicone that needs less product to construct the insulating glass units (IGUs). To put things in perspective, a high-modulus sealant has the capability to accommodate a high-stress load with less movement or strain and is sought-after where strength is required—making them trendier in structural glazing. Besides, the optimized use of high-modulus silicone will help curb the carbon footprint of the manufactured products.

Sealant manufacturers eye North America and Europe

Traction for structural sealants for water sealing and demand for high wind-load designed for building façade will remain key in the U.S. and Canada. Given that the buildings in North America need to withstand frequent or potential hurricanes, penetration of structural sealant glazing will be noticeable in the region.

Not to mention the demand for high-temperature sealants will surge as it gives assurance to contractors that building projects will resist hostile environmental conditions and will remain durable.

Europe is likely to provide lucrative growth opportunities for sealants manufacturers on the heels of demand for weatherproofing sealants witnessing an uptick in the U.K., Italy and France. For instance, silicone sealants will set the trend as they are effective for waterproofing and is resistant to moisture, chemicals and other weather conditions.

Amidst a seismic rise in construction projects, silicone sealants will spur the trend in structural glazing and weatherproofing. Sealants will remain instrumental to provide impetus to buildings to reduce or minimize infiltration of airborne contaminants, rain and wins, while boosting sustainability.

supply chain resiliency
Archives, Global Logistics, Global Trade Daily

How Are Manufacturers Building Supply Chain Resiliency?

Leave a comment

As manufacturers plot their paths forward, many are paying closer attention to supply chain resiliency and the need for stronger, tech-enabled supply chains that can withstand shocks. 

The global pandemic upended most of the business world, with a particularly pronounced impact on the world of manufacturing with its production lines that rely on just-in-time (JIT) delivery and groups of workers arrayed in tight formation along the production line. Social distancing made quick work of the latter just as severe disruptions rippled across global supply chains.

Manufacturers found themselves facing several shocks simultaneously. Initially, massive jumps in demand confronted producers of consumer staples such as groceries and home supplies, purchased by consumers caught in a frenzy of panic buying. In addition, consumers largely turned away from in-person shopping in retail stores and moved their purchases online.

For example, Small Business Trends reports that online grocery shopping grew by a factor of seven times during the first wave of the pandemic. This growth in online shopping goes beyond just groceries. In fact, a recent survey found that 20% of those polled bought physical goods online for the first time during the pandemic.

As time wore on, demand composition changed. Consumers adjusted to working from home, spending their dollars on more comfortable clothes, new entertainment options and fitness equipment, and pursuits like baking sourdough bread. While the service economy continued to suffer, the producers of physical goods saw spikes in demand for their wares.

Reversing the Trend

The last 20 years have been characterized by a move to JIT production and sourcing from low-cost jurisdictions, such as China and Vietnam, which were among the first to lock down in the face of the pandemic. While this offshoring of production was historically beneficial for the bottom line, it left most organizations exposed to a systemic shock, precisely the kind of worst-case scenario brought about by the pandemic. The response to this has been renewed interest in ensuring supply chain resiliency.

According to IDC Manufacturing Insights, supply chain resiliency is “the capability of a manufacturing supply chain to ensure and preserve the continuity and consistency of product supply and meet business obligations for product delivery and service to customers by anticipating and being prepared for both short-term operational and long-term strategic disruptions.”

With economic activity—including manufacturing—now picking up and erasing many of the losses incurred early in the pandemic, the business world has settled into a new steady state characterized by intense and constant change. This “new normal” environment demands supply chains that rely not on JIT production and low-cost manufacturing, but rather on high levels of resiliency that allow them to ride out the highs and lows of whatever is thrown at them.

5 Key Resiliency Strategies

As they work to improve their supply chains’ resilience and evaluate where to make investments in tools, processes, and people, Bain & Co., tells manufacturers to factor in these five key tenets of supply chain resiliency:

1. Network agility (flexible ecosystem of suppliers and partners)

2. Digital collaboration

3. Real-time network visibility

4. Rapid generation of insights

5. Empowered teams

For manufacturers, the first step to improving supply chain resiliency is to establish end-to-end visibility of the supply chain. That means mapping out all actors in the supply chain, across geographies and down to the tier 2 and tier 3 suppliers that characterize most supply chains with a strong Asian component.

According to McKinsey, since the pandemic hit, “39% of manufacturing organizations have implemented a nerve-center or control-tower, approach to increase end-to-end supply-chain transparency.”

This enhanced visibility is made possible through the deployment of technology. “Digital tools are making real-time visibility and traceability a reality, including a better understanding of potential failure points,” Bain & Co., points out. “Whatever new shocks the future may bring, organizations can now design supply chains to be more flexible and less vulnerable than ever before.”

These same digital tools can be deployed outside of the factory, McKinsey adds, “reaching across the end-to-end value chain to address planning (and replanning) challenges related to disruptions at suppliers or production plants, operational challenges in managing workplace health risks, and delivery challenges posed at transportation modes or in warehouses.”

Tech Tools Step Up to Help

Manufacturing execution systems (MES) help manufacturers achieve their supply chain resiliency goals. A solution that aligns with enterprise resource productivity platforms and warehouse management solutions, MES offers material visibility, automated task execution, and real-time traceability throughout the supply chain.

Armed with good visibility, manufacturers can diversify their supply chains away from vulnerable single source providers, and particularly those located in countries where the pandemic and other disruptions have been poorly managed.

With manufacturing experts agreeing that the “new normal” is here to stay, manufacturers are undertaking numerous initiatives to meet COVID-relate challenges. With many initiatives accomplished in record time, they’ve worked to achieve supply chain resiliency, laid the groundwork for reshoring production, undertaken new distribution strategies, and deployed new technology. Combined, these efforts will help manufacturers create future-proof supply chains that can weather any storm.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to reach out to us here to learn more.

This article originally appeared on GenerixGroup.com. Republished with permission.

business
Archives, Commentary, Global Trade Daily

7 Tips & Ideas to Start a Small Scale Manufacturing Business

Leave a comment

The 21 century makes it possible for everyone to launch his or her own business, as most of us have access to such efficient tools as blogs, social media, etc. At this moment, the COVID-19 pandemic modifies the ways to run any kind of business.

However, it is still possible to start something new, and by following some approaches, you will do it safely, minimizing any risks, and getting the most out of your concepts. We are here to help you find these profitable ways and share some effective tips on starting any business.

Let us begin with the most interesting business ideas that can provide you not only with material well-being, but also bring joy and even unlock your creative potential.

Candle Making

Regardless of common preconceptions, winter is not the only sales season for candles. Today, it has become both an essential attribute for house coziness and an integral part of some practices.

Meditation and yoga are quite widespread activities, and many practitioners cannot imagine the process without a bewitching and relaxing scent filling the space around. But also the daily environment requires to be in line with the mood, whether dreamy and chill or refreshing and productive.

Tip: Imagine your target audience and try to foresee their expectations from your candles: where they could use it, what they want to feel while inhaling the scent, etc. This will help you improve their design and also write more attractive product descriptions.

Candle manufacturing is one of the best choices for your first small scale business because you need only basic tools and materials that do not cost much, and the process itself is easy and fast to master.

Bakery & Confectionery Products

If you enjoy cooking, you have a nice opportunity to transform the hobby into a source of income. No doubt, in this case, you will have a huge customer base. People need some special, unique, and delicious sweets on any occasion in their lives.

It is a space for your creativity, which you can use to create feels-like-home treats, wedding cakes, bread with unusual tastes, cupcakes and cookies, pies, gluten-free bakery, organic, vegan, healthy, or fitness-sweets, and other splendid products.

Tip: With such a wide spectrum of possible niches, it is important to focus on a few main directions and follow them to become a professional there. People tend to trust rather highly specialized producers than “Jacks of all trades”.

Depending on the budget, you can open your small bakery or make everything at home. With social media, it is absolutely possible to create a proper and flourishing business within the four walls.

Jewelry

Jewelry has become an extremely popular choice for starting a small-scale business. But it does not mean you have no chance to enter this market successfully. With a quite complex structure, this branch is still affordable and promising.

Again, you can choose an appropriate niche relying on your budget. If you can find suppliers and can afford precious and semi-precious gems and stones, you can go for fine jewelry. Otherwise, you can still find your place in this business, creating either trendy everyday pieces or unique niche jewelry shifting the emphasis on a design – both options from inexpensive materials.

Tip: Jewelry is all about aesthetics, so make sure you develop an eye-catching design for the brand, a unique voice that could tell the potential customers about your pieces.

Ceramic Ware

Pottery can become not only your business idea but also a great kind of entertainment. It is fun and often unpredictable, and the feeling of soft flowing clay is immensely satisfying. Pottery is one of the oldest trades in human history. Nevertheless, it is still a tool that you can use to embody your creativity and personal uniqueness.

To realize your projects, you need to have a number of materials and equipment, such as pottery wheels and kiln, different clays, sculpting and trimming tools, glazes, etc. Make sure you have enough space to store these things and work with them.

Tip: Take into account that unlike other types of manufacturing, pottery requires a number of special tools and devices. Make sure you plan your budget first and buy quality equipment.

If you do not want to dive into ceramic ware, you can always go for clay sculptures, souvenirs, and other little stuff that people buy for gifts and home decor!

Makeup Products

Cosmetics is a quite saturated market that always welcomes newcomers, though. On a low budget, you will unlikely create exquisite makeup or care products, but you can always turn to traditions and inexpensive natural ingredients.

As always, it is better to choose one niche and then grow to new products, if you want. Hair products, lip balms, scrabs, creams – the world of cosmetics has a wide range of possible ways for growth!

Tip: Whatever niche of cosmetic products you choose, you need to be a guru of the process, as low quality here can possibly lead even to severe health problems.

Shoemaking

Shoemaking can easily become a business that is oriented at global concepts: sustainable development, veganism, minimalism, etc. However, it could also be a design resolution that you can use to express creativity.

Choose your target audience and create footwear for daily needs or for those who love to wear fancy things.

Tip: Prototype development is an essential part of the shoemaking process before the final production. At this stage, you can improve your model and see the mistakes you have made before.

Furniture Manufacturing

If you have an inclination for this trade, you will enjoy launching a furniture business. Here you face the same challenges and essential decisions: target audience, aim, and design.

Regardless of what furniture you want to make and which needs to meet, it is a low-budget decision for a small scale manufacturing business. Not only you can create brand-new pieces, but also offer repair and restoration services.

Tip: Make sure the pictures of your pieces are quality and the descriptions contain all the important information, such as size, materials, care and maintenance, etc.

Final Thoughts

Small scale business offers numerous opportunities for people to help others and to make the world more beautiful and convenient. You have the chance to become a part of this process, and you do not need much to start.

After you launch the business, it is essential to maintain its profitability by promoting your brand. To do so, you can start blogging, submit guest posts on business blogs, and use social media marketing.

Right now, you have everything you need to embody your amazing ideas and make life a better place. So rally your force and turn over a new leaf!

_______________________________________________________________________

Nancy P. Howard has been working as a journalist at an online magazine in London for a year. She is also a professional writer in such topics as blogging, IT and marketing.

global supply chain
Archives, Global Trade Daily, International Trade, Trade Cycle

Sales & Operations Planning: A Long-Term Solution to Global Supply Chain Volatility

Leave a comment

As companies strive to provide the highest quality and service at the lowest cost, global supply chains play a vital role. Companies often approach their global supply chain planning with a “do it and forget it” attitude, expecting that a detailed identification, verification and qualification process will not require frequent revisits of past decisions. Global political climates, tariff wars, and the recent COVID-19 virus outbreak continue to illustrate the urgent need for supply chain agility, risk management and contingency planning.

Sales & Operations Planning (S&OP) is a mid-term tool to ensure alignment among corporate strategic objectives, whereas Sales & Operations Execution (S&OE) is a tool to ensure balance among supply and demand. The flexibility of S&OP allows for an organization to look for imbalances at intermediate levels in a product hierarchy without getting “lost in the weeds” at detailed SKUs but not at too high of a level to be less meaningful.

In order to review this supply and demand balance, one must create supply planning groups and a structure based upon the critical success factors for delivering high levels of service. These planning groups could be internal manufacturing groups, make/buy items, a specific external supplier, or country of origin groupings. Given the extended lead times for international supply chains, S&OP is an ideal process for looking several months out into the future to perform risk analysis.

Strategic Considerations for International Sourcing

Companies initially evaluate their strategic objectives when pursuing an international sourcing initiative, but this should be revisited on a regular basis to ensure that the chosen supply chain continues to meet the companies’ needs. The lowest total cost of ownership is the primary objective, yet as manufacturing has declined in Western economies, the only source for production is often in the younger global economies such as China, India, Malaysia or countries of Eastern Europe.

Over time, labor rates and raw material costs in these countries have fluctuated due to global supply and demand. Combined with changing prices for the underlying commodities in those local markets, companies are facing more frequent price instability. Additionally, tariff uncertainty or increases force a regular review of the global supply chain to ensure strategic objectives have not changed and are still being fulfilled.

Supply Chain Complexity vs. Diversification

It is easier for a supply chain team to manage a single production site within a single manufacturer or at least from within a single country of origin. The obvious downside to that approach is that if that country is subject to a sudden tariff spike, an organization can quickly find itself with no choice but to accept the increase in costs and a likely impact to margins. As a potential alternative, a company can pursue a dual country sourcing strategy where it can cost-average its pricing to mitigate the short-term impact. Over a longer-term, a purchaser has the opportunity to switch volumes between suppliers/countries to mitigate those impacts.

How can S&OP help?

By its very design, the S&OP process is an ideal vehicle to prompt a company to ask the necessary strategic questions on a regular basis. In addition, a robust S&OP process takes into consideration changing costs and gross margin impacts to the bottom line to ensure gross margin or revenue targets are met. Stepping out of the day-to-day S&OE during the S&OP process allows for that broader perspective to evaluate “what-if” situations that could impact costs, demand, supply and margins before they reach fruition. In this manner, S&OP is a useful scenario-management tool to look at these cost changes, price increases and estimated adjustments to volumes at an aggregate level to quickly identify the potential impacts to the bottom-line without having to perform a time-consuming SKU-by-SKU analysis.

Contemporary S&OP tools often have scenario-modeling capabilities and increase the speed and accuracy of these strategic evaluation exercises. However, depending upon the scale and scope of a company’s supply chain, an expensive tool is not always necessary. Well-designed spreadsheet models populated by databases may be a sufficient starting point for a business. No matter what tool is utilized, the S&OP process is designed to identify potential issues and act as a launching point for projects elsewhere in the organization to identify methods for addressing those issues in the most cost-effective manner.

Companies with well-designed and utilized Sales & Operations Planning processes have well-demonstrated benefits of:

-Reduced stock-outs, driving higher service level

-Lower variable labor costs

-More efficient raw material, work-in-process and finished goods inventory utilization

-Lower transportation and material acquisition costs due to more stability

-Higher gross margins

-Increased top-line sales

Strategically including tariff management and other global supply chain variables in the S&OP process to evaluate possible impacts to the supply and demand balance, as well as cost structure, is critical to ensuring the continuity of supply necessary to provide high levels of service and cost management.

________________________________________________________________

Paul Baris is a supply chain expert with over 30 years of experience in the industry as a Vice President of Supply Chain for several companies as well as a consultant implementing Sales & Operations Planning, Inventory Strategy and Demand Planning practices.

Paul’s strengths include: Operational Performance, Root Cause Analysis, Lean & Six Sigma Methodology, Client & Vendor Liaison, Leadership, ERP, Strategic Procurement, Project Management, Warehouse Redesign/Implementation, Supply Chain Engineering, Statistical Process Control, 3PL Management, WMS, Demand Planning, Inventory Planning, Change Management, S&OP, and Operational Layouts. Paul is a certified supply chain professional from APICS and has a Certification in Supply Chain Management from the University of Tennessee. Paul’s professional certifications include: Change Management – Prosci ADKAR, Professional Negotiation – Karrass, Juran on Quality I & II – Kepner-Tregoe, Strategic Procurement – Stanford University, Statistical Process Control, Purchasing Strategy, Oliver Wight S&OP, and S&OP Implementation.