More Focus on the Results of the 2012 Panjiva/GSC Global State of Global Trade Survey

As we reported last month,  global trade intelligence leader Panjiva and The Global Sourcing Council, a non-profit organization that fosters dialog on critical issues in global sourcing and supply chain management, unveiled a joint report, The State of Global Trade in 2012,  This report highlighted key concerns, challenges and opportunities facing those engaged in global trade. Based on a survey of buyers and suppliers worldwide, the report found that half of global trade professionals are optimistic about the global economy in 2012 and nearly three quarters plan to spend at or above 2011 levels.  If you wish to see the full report, here is a link to a free download:  http://panjiva.com/blog/whats-new/the-state-of-global-trade-in-2012.

 

Since then, more reporting has followed:

From the LA Times of April 14th, an article about the predictions of the strength of future trade cited the Panjiva and Global Sourcing survey that half of the buyers and sellers were somewhat or very optimistic about the global economy contrasting it to the more negative assessment from the International Monetary Fund, which foresees a slowdown in global trade because of continuing debt woes in Europe, a slowing in growth of the Chinese economy, high energy prices and persistent fears about the outbreak of more fighting in the Middle East.  http://www.latimes.com/business/la-fi-ports-20120414,0,2708620.story

SourceURL:file://localhost/Users/apple/Desktop/april_newsletter%20FINAL%202012.doc

  • The Business Information Industry Association (BIIA), of which Panjiva is a member, cited the finding that slightly more than half of the importers interviewed had expressed a desire to increase purchases from other Asian nations, notably India, Vietnam and Thailand. But that has not yet translated into shifts in outsourcing.  Article link:  http://www.biia.com/us-importers-express-desire-to-shift-purchases-to-other-asian-nations
  • An April 10th article in the New York Times reported that overseas demand, especially from Europe, contributed to an unexpected trade surplus of $5.35 billion in March while the domestic demand is still slowing, which is particularly concerning in an economy that has been deliberately engineered to slow inflation.  Given that there is inflation reported of 3.6 percent which is most likely understated, it is unclear how much the government wants to stimulate the economy.

Here is where Panijiva’s survey, which was jointly undertaken with the GSC, helped clarify an important point.  While Chinese exports are recovering, the shift in manufacturing from China to other Asian nations has not yet occurred even though more than half the respondents said they were interested in increasing purchases from these countries particularly, Thailand, India and Vietnam.  As you may know, this shift has long been predicted but not yet materialized.  The full article:  Surplus in China Trade Comes as Surprise – NYTimes.com

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And, more information from the Panjiva GSC Survey about Socially Responsible Sourcing:

And, for the GSC community only, Panjiva and GSC surveyed the increased interest in socially             responsible sourcing this year.  This was part of the survey jointly released that was referenced             in the articles cited above.   Now this survey was not about the service industry, so its results             may not be for all global sourcing, but they are interesting nonetheless, and certainly show the             increasing importance of sustainable and socially responsible practices.

The question presented:

To what extent to you think your organization will have increased interest in                                     the coming year  in sustainable and socially responsible practices in global                                     sourcing?

SourceURL:file://localhost/Users/apple/Desktop/april_newsletter%20FINAL%202012.doc

  • The Business Information Industry Association (BIIA), of which Panjiva is a member, cited the finding that slightly more than half of the importers interviewed had expressed a desire to increase purchases from other Asian nations, notably India, Vietnam and Thailand. But that has not yet translated into shifts in outsourcing.  Article link:  http://www.biia.com/us-importers-express-desire-to-shift-purchases-to-other-asian-nations
  • An April 10th article in the New York Times reported that overseas demand, especially from Europe, contributed to an unexpected trade surplus of $5.35 billion in March while the domestic demand is still slowing, which is particularly concerning in an economy that has been deliberately engineered to slow inflation.  Given that there is inflation reported of 3.6 percent which is most likely understated, it is unclear how much the government wants to stimulate the economy.

Here is where Panijiva’s survey, which was jointly undertaken with the GSC, helped clarify an important point.  While Chinese exports are recovering, the shift in manufacturing from China to other Asian nations has not yet occurred even though more than half the respondents said they were interested in increasing purchases from these countries particularly, Thailand, India and Vietnam.  As you may know, this shift has long been predicted but not yet materialized.  The full article:  Surplus in China Trade Comes as Surprise – NYTimes.com

___________________­­­­­­­­______________________________

And, more information from the Panjiva GSC Survey about Socially Responsible Sourcing:

And, for the GSC community only, Panjiva and GSC surveyed the increased interest in socially responsible sourcing this year.  This was part of the survey jointly released that was referenced  in the articles cited above.  Now this survey was not about the service industry, so its results may not be for all global sourcing, but they are interesting nonetheless, and certainly show the             increasing importance of sustainable and socially responsible practices.

The question presented:

To what extent to you think your organization will have increased interest in  the coming year  in sustainable and socially responsible practices in global sourcing?

So, from the chart directly above, we can readily see that 66% of the respondents say that they are likely or very likely to have increased interest in 3S while only 8% are unlikely or very unlikely.  Certainly this is a compelling and interesting finding!

 

About Panjiva

Panjiva is an online resource for sourcing executives to gain valuable knowledge about suppliers around the world. By providing the most comprehensive data in an easy to use format, Panjiva informs the decisions that facilitate doing business globally. Supply chain and global production executives responsible for finding the right factories, negotiating costs and avoiding costly supply chain disruptions have been “flying blind.” Panjiva is the first and only online information source designed to provide complete transparency into overseas suppliers. Leveraging a variety of public and proprietary data sources, Panjiva is bringing new levels of visibility to the management of global supply chains. Panjiva was founded by CEO Josh Green and CTO James Psota. For additional information, visit: http://panjiva.com.