November 4th – 8th 2024 Supply Chain & Logistics News
Steve Banker a tenured Supply Chain analyst with ARC Advisory Group will be presenting next Wednesday, November 13th with Wendy Ripley on “How Orvis Used Order Tracking to Eliminate Stockouts.” This Webinar is free to anyone who wishes to attend and can be found by clicking the link below.
Supply Chain News for the Week:
Trump Vows on New Trade War Sends Supply Chain Importers Scrambling
Amid President-elect Trump’s proposed tariffs, retailers and manufacturers are working with logistics partners to “frontload” shipments, aiming to mitigate potential cost increases and supply chain disruptions. The tariff proposals, which could range from 10-20% across imports and up to 100% on Chinese goods, recall the trade tensions of 2018 and are expected to increase demand for container space, trucking, and warehousing. This surge is already impacting trucking and ocean carrier stocks, as companies seek to import goods sooner to avoid new costs. Cross-border trade, especially with Mexico, is also in focus due to its recent growth and the role of Chinese manufacturing in Mexico as a way to bypass tariffs. As companies race to adjust, supply chains face short-term price hikes and logistical pressures, though the long-term impact remains uncertain as specific policies are yet to be finalized.
DOE Awards Moment Energy to Repurpose Used EV Batteries
Moment Energy is set to establish a gigawatt-scale factory in Taylor, Texas, focusing on repurposing used electric vehicle (EV) batteries for stationary energy storage, with $20.3 million in funding from the U.S. Department of Energy. This new facility will help build a supply chain loop within the EV industry, converting end-of-life batteries from automotive partners like Mercedes-Benz into second-life battery systems. Moment’s approach—reusing rather than dismantling batteries—addresses supply chain challenges by offsetting demand for raw materials like nickel and cobalt, which are costly and environmentally intensive to mine. The Texas factory’s strategic proximity to Tesla and regional EV adoption hubs further strengthens Moment’s role in the circular economy, as it taps into nearby supply chains for battery sourcing, supports local energy infrastructure, and aligns with DOE’s goals of reducing reliance on non-renewable resources in traditionally coal-reliant communities.
Karmak and Syncron Partner to Automate Inventory Planning Process
Karmak, a leader in business management for the heavy-duty trucking industry, and Syncron, known for Service Lifecycle Management (SLM) solutions, have announced an integration of Syncron’s platform within Karmak’s Fusion system. This collaboration allows dealers and OEMs to automate inventory planning, optimize pricing, cut costs, and enhance service. Using AI and machine learning, Syncron’s platform predicts service needs, improves parts availability, and reduces waste. The integration aims to improve customer satisfaction and operational efficiency, particularly critical given workforce shortages and changing industry demands.
Nippon Steel Seeks to CLose US Steel Deal Before New Administration Takes the White House
Nippon Steel aims to finalize its $15 billion acquisition of US Steel by the end of the year before Donald Trump potentially re-enters office, as the deal is critical for Nippon Steel’s growth strategy. The Japanese steel giant, facing opposition from both U.S. labor unions and Trump, has made pledges to address social and investment concerns, including potentially selling a stake in a U.S. joint venture. The Committee on Foreign Investment in the United States (CFIUS) extended its review of the acquisition until December. Nippon Steel plans to increase its steel production capacity significantly through this acquisition, aiming to grow its footprint in the U.S. market and reduce exposure to Chinese market risks.
Nissan Motor is cutting 9,000 jobs and reducing its global manufacturing capacity by 20% to save $2.6 billion this fiscal year, amid a sales slump in China and the U.S. The company has lowered its profit outlook by 70% due to intense competition, particularly from Chinese EV manufacturers, and its failure to capitalize on the growing U.S. hybrid vehicle market. Nissan plans to restructure by reducing production capacity, shortening vehicle development time, and selling up to 10% of its stake in Mitsubishi Motors. The company also reported an 85% drop in second-quarter operating profit.
Song of the week:
