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Supply Chain by the Numbers

- August 5 , 2011


Supply Chain by the Numbers for Week of August 5, 2011


Learjets Leaving US for Mexico; Oil Prices Falling  - but It's Not Good News; JB Hunt Transition Continues; China Manufacturing Sector Wobbly at Best


3.5 Billion

Amount of Mexican exports of aerospace equipment last year, as the country is rapidly becoming a manufacturing force in the sector. The number comes from an article in the Wall Street Journal this week noting that Bombardier is building its next generation Learjet in Querataro, attracted by - of course - markedly lower labor costs for its 1600 factory workers, giving it a 25-30% improvement in labor costs for each plane versus production in the US..




The approximate price of a barrel of light sweet crude oil today, well off of its highs earlier this year, as oil continues its slide in the face of signs and/or worries about a weakening economy. The reality is we are in a sort of terrible bind where if the economy is good we are going to get higher oil prices, and find relief only when the economy softens. Pick your poison, but we will take the former.


Increase in JB Hunt's intermodal revenue in the second quarter, versus just a 4.3% gain in its truckload carriage segment, as the company continues on with its business model transition away from pure trucking. It's dedicated and logistics services business rose more than 18% in the quarter. Its dedicated and intermodal businesses "once again revealed a higher degree of resiliency than that of traditional, full truckload transportation models,” said John Roberts, CEO. For a full run down of Q2 truckload carrier results and trends, go to: US Truckload Carriers Enjoy Mostly Strong Second Quarter, but as Usual Recently, Logistics and Intermodal Lead the Way.



The number in July for the Chinese version of the Purchasing Managers Index ,making it the fourth straight month of decline for this measure of manufacturing activity there. The PMI there is now just barely over the mark of 50 which separates manufacturing expansion from manufacturing decline. Analysts said the declining PMI was partly the result of softer external demand from Europe and the US. This was reflected in the sub-index for new export orders which fell 0.1 points to 50.4 in July. The Chinese economic machine seems to be wobbling.

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