We used the graphic below earlier this week in an On-Target newsletter story, but it was interesting enough we thought it was worth repeating here as our Supply Chain Graphic of the Week.

As shown in the illustration below, industrial/manufacturing output took a dramatic hit during the global recession, perhaps even more dramatically than most of us realized.

At the bottom of the recession in June, 2009, industrial production in the US was down 15% from the levels in January, 2008. As the graphic shows, it was even worse in Europe and Japan, with the Euro zone down some 20% and Japan an astonishing 35%. Even Brazil, one of the so-called fast growing "BRIC" countries, production dropped by nearly 20%.

Maybe more importantly, the developed economies of the US, Europe and Japan are still seeing current production levels well below the early 2008 volumes almost three years later.

As the graphic also shows, however, the story has been much different in China and India. Not only did both countires avoid major dips in output even during the depths of the recession, they also have also far exceeded their January, 2008 output levels. China's production is up about 33% to date, and India up nearly 25%.

While Brazil took a bigger initial hit than China and India, it has snapped back dramatically overall despite a recent dip, with output back above early 2008 levels.

It is a new world indeed.

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