Author Archives: ASK SOURCE

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ASIA MANUFACTURING COST DRIVERS REPORT

Category:Uncategorized

                         Q1 – 2019 (Jan, Feb, Mar)

Executive Summary

The commodity price trends in the first quarter are mixed in Asia. Many grades of Rubber, Metals, Wood, Paper, Ceramics raw materials prices were mostly down in price. While some grades of Steel, Alum, Textiles and Fuel prices were all go up. Also Labor rates were up in the lower wage countries. The trend for World Container Index was down. Only Plastics prices were mixed. The US Dollar was down a little bit against most of the Asian currencies in Q1. China imports saw slightly up while exports saw an obviously decline in this quarter. The China PPI was steady, and the China CPI was up marginally. The PMI USA indexes saw slightly down in Q1 while PMI China and PMI Hong Kong saw marginally improvement. Below is a chart of the general trends and for all the details, please see the entire report.

Report Details

PLASTICS & RUBBER

– The General Purpose plastic prices were mixed in first quarter. PS (GPPS/688B) and PE (LD400/Injection) were down marginally, while PP (K8303), HIPS (PH88) and PP(Food Grade) prices were all slightly up, with HIPS (PH88) up most which is over 3%, the rest of General Purpose plastic prices were unchanged. Year over year, PE (LD400/Injection), HIPS (PH88) and PVC (S700) prices are down 8.5%, 5.2% and 2.1% respectively, while PP (K8303), HDPE (HHMTR210), PS (GPPS/688B) and PP (Food Grade) are up on the average of 3.9%. Only PET (SE-3030) in price is steady versus one year ago.

– Similarly, the first quarter of engineering plastic prices were mixed, except for PU Foam was unchanged, Nylon (PA66), Nylon (PA6) and ABS were up 3.1%, 2.7% and 1.4% respectively, while PL (L-1250Y) and POM were down marginally. Year over year, ABS in price is obviously down 10.6%, followed by PU Foam is faintly down 1.6%, while the other prices are up on the average of 4.6% versus one year ago.

– Most of the Rubber prices were down in Q1, SCR5 saw a little up which is over 2%. EPDM saw obviously down in price, which was over 8%. Latex, CR prices were all down over 2%, BR9000 was down marginally. NBR price was steady. Year over year, SCR5, Latex and NBR prices slightly up which are over 2%, while EPFM in price is down 8.3%, followed by CR down 3% and BR9000 down 2.6% versus one year ago.

METALS

– For the first quarter of 2019, most of the prices for Carbon Steel were up. Only Steel Wire in price down 2.3%. Hot Roll Steel Tube, Cold Roll Steel Sheet, Pig Iron and Hot Roll Steel Sheet were up on the average of 6.4%, while Cold Roll Steel Tube was steady. Year over year, Steel Wire and Cold Roll Steel Sheet were up 8.9% and 1.1% respectively. While Hot Roll Steel Tube, Hot Roll Steel Sheet and Cold Roll Steel Tube prices are all down slightly, which are over 4%. Pig Iron is unchanged in price versus one year ago.

– In the Stainless Steel part, most of the grades of prices were down in the first quarter, with 410, 420 and 201 in price down on average of 3.8%, but 304 in price was up marginally. The price of 430 was steady. Year over year, all the Stainless Steel prices are down, with 430 is down the most which is over 11%, followed by 420 is down 10%, and other grades of stainless steel prices are down on average about 4.1% versus one year ago.

– All aluminum prices were up faintly in the first quarter. Year over year, 6061 and A00 in price down 4.6% and 0.2% respectively, while the rest of grades in price are up slightly, with 1060 price up 3.5% and 3003 up marginally in price versus one year ago.

– In Other Industrial Metals, all grades trend was up in Q1. Nickel’s price was sharply up 16.6%, followed Brass Rod price up 7.3% and the rest of metals were up a little. Year over year, Nickel and Brass Rod metals prices are up 7.2% and 4.5% respectively. Other metals prices are down slightly, with Zinc price down most which is over 9% versus one year ago.

WOOD, PAPER & TEXTILES

WOOD, PAPER & TEXTILES – Wood prices were slightly lower in Q1, except for Beech Hardwood and Pine Softwood were steady in price, MDF price was down 3%. Year over year, Beech Hardwood and Pine Softwood are up marginally. While MDF price is down 3% versus one year ago.

– While most grades prices of Paper Materials were down in the first quarter, with Kraft and Art paper were both sharply down over 14%, and others were down slightly. Only Corrugated Board price was up 4.6%. Similarly, year over year, all grades of paper in prices are decreasing, with Art Paper enormously down over 18% and others prices down on average of 10.7% versus one year ago.

– Textile fabric prices saw a little change in the first quarter, with Raw Cotton price was up 1.1% in price. While the rest grades prices were steady. Year over year, the grade in prices are mixed, with 100% Polyester Fabric price is significantly up 21.4%, but Raw Cotton price is down 0.9%. The rest of Textiles prices are unchanged versus one year ago.

CERAMIC AND GLASS RAW MATERIALS

 -In Ceramic Raw Materials, the grades in price were slightly down in Q1, with Soda Ash is obviously down 13.6% and Alumina slightly down 1.7% in price, other grades in price were steady. Year over year, Alumina and Glaze prices are both up marginally, while Quartz price is down 3.8%. Other Ceramic and Glass material prices are steady versus one year ago.

FUEL

Fuel prices in China were generally going up, with LPG , Diesel Oil and Natural Gas prices were obviously down in the range of 3% ~15% in the first quarter. However, Petroleum price was sharply down 15.4%. Meanwhile, year over year, except for Petroleum price is down over 15% , the rest fuels are up slightly in price between 6%~10% versus one year ago.

OCEAN FREIGHT

The World Container Index was sharply down 16.3% in the first quarter. To the contrary, year over year, the World Container Index is obviously up 13% versus one year ago.

COST OF LABOR

Most of the Asian labor rates were up in Q1, with Bangladesh rate was significantly up 50.9%, followed by Indonesia rate up 9.4%, Vietnam and China rates are up over 2%. Thailand rate is no change. Similarly, year over year, rates are up in most countries with Bangladesh rate is sharply up the most (over 50%) followed by Indonesia (up 9.4%), China (up 7.8%), Vietnam and India both up over 5%, while Thailand rate is unchanged.

CURRENCY EXCHANGE RATE

The World Container Index was sharply down 16.3% in the first quarter. To the contrary, year over year, the World Container Index is obviously up 13% versus one year ago.

For the first quarter, the USD was slightly weaker against the Thailand Baht, Indonesian Rupiah, India Rupees, China RMB, Chinese Yuan and Taiwan New Dollars, while slightly strength against Bangladesh Taka and Vietnam Dong. Year over year, the biggest gains for the USD are against the India Rupees and followed by China RMB, Taiwan New Dollars, Indonesia Rupiah and Vietnam Dong and while its slightly weaker against the Thai Baht.

CHINA TRADE (Data lags by one month)

– China Imports was slightly up 1.16% and Exports was obviously down 10.22% in the first quarter. To the contrary, year over year, China Imports is largely down 7.3 while Exports are sharply up 14.1 versus one year ago.

– The China Consumer Price Index (CPI) was faintly up 0.39% while the China Producer Price Index (PPI) is unchanged in the first quarter. Year over year, the China PPI is down 2.62% while the China CPI is up marginally versus one year ago.

PURCHASING MANAGERS INDEX (PMI)

China PMI and Hong Kong PMI were both down slightly. Only UAS PMI was slight down 0.18% in the first quarter. Year over year, China PMI, Hong Kong PMI and USA PMI are all down slightly, with UPS PMI down most which is over 8% followed by China PMI down 7.46% versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.

For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.

Visit our :http://www.sourceint.com/

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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ASIA MANUFACTURING COST DRIVERS REPORT Q4

Category:Cost Drivers Report

Executive Summary
The commodity price trends in the fourth quarter are mostly down in Asia. Many grades of Plastics, Rubber, Steel, Alum, Metals, Paper, Textiles raw materials and Fuel prices were mostly down in price while some grades of Wood, Freight went up in price. Labor rates were steady in the lower wage countries, and Ceramics price was mixed. The US Dollar was down a little bit against most of the Asian currencies in Q4. China imports and exports saw sharply down in this quarter. The China PPI and the China CPI were both down slightly. The PMI Hong Kong indexes saw a slightly improvement in Q4 while PMI China and PMI USA saw marginally down. Below is a chart of the general trends and for all the details, please see the entire report.

Report Details

PLASTICS & RUBBER
– Except for PET (SE-3030) was unchanged, the rest of General Purpose plastic resin prices were down in the fourth quarter, PP (K8303), HIPS (PH88), PP (Food Grade), PS (GPPS/688B) and PE (LD400/Injection) were down on the average of 10.8%, the others down in price marginally. Year over year, the prices is mixed. PE (LD400/Injection) and HIPS (PH88) prices are down 10.1% and 8.2% respectively, and PP (Food Grade) and PS (GPPS/688B) are down slightly, while HDPE (HHMTR210), PP (K8303) and PVC (S700) are up mildly in price versus one year ago.

– Engineering plastic prices were all down in the fourth quarter, ABS price was obviously down 11.9% and the balance plastic prices were down marginally. Year over year, ABS in price is down the most at 18.5% followed by PU Foam down 2.6%, while Nylon (PA66) and POM prices are up 6.0% and 9.6% respectively, and the others are only up marginally in price versus one year ago.

– Most of the Rubber prices were down in Q4, BR saw a huge down in price, which was over 19% and Natural, Latex, SCR5 and CR prices were all down over 2%. NBR and EPDM prices were steady. Year over year, SCR5 and Latex prices are down largely which are over 12% and BR down slightly, while EPFM up 9.1% , followed by CR up 6.3% and NBR up marginally versus one year ago.

METALS
– For the fourth quarter of 2018, all the prices for Carbon Steel were down, with Hot Roll Steel Tube was down the most which was over 19%, followed Pig Iron was down 12%, and others were down on the average of 9.7%. Similarly, year over year, the trend is all down with Hot Roll Steel Tube down the most at 21.1%. Others are down on the average of 10.6% versus one year ago.

– In the Stainless Steel part, all grades of prices were down in the fourth quarter, with down on average about 3.9%. Similarly, year over year, the trend is down, with 430 is down the most that over 14%, and other grades of stainless steel is down in price on average about 5.5% versus one year ago.

– All aluminum grades were down faintly in price in the fourth quarter. Year over year, all prices are down in price, with 6061 is down the most which is over by 12% followed A00 and 3003 down 6.8% and 4.6% respectively, and 1060 price is down marginally.

– In Other Industrial Metals, all grades trend was down in Q4. Nickel’s price was down by 14.8%, followed Copper down 4.1% in price and the rest of metals were down a little. Year over year, most of metals prices are down, with Nickel down most (close to 14%) followed by Nickel down 6.1%, Copper and Brass Rod are both down 3.1% versus one year ago.

WOOD, PAPER & TEXTILES
– Wood prices were slightly higher in Q4 except MDF was steady in price. Year over year, MDF’s price increase over 6% and Beech Hardwood over 3% respectively, and the Pine Softwood is up marginally.

– While all grades prices of Paper Materials were down in the fourth quarter, with Corrugated Board price was sharply down 16.1%, and others were down slightly. Meanwhile, year over year, all grades of paper in prices are decreasing, with Art Paper down over 11% and others prices down on average of 5.9% versus one year ago.

– Textile fabric prices saw little change in the fourth quarter with 100% Polyester Fabric and Raw Cotton down 9.7% and 5.9% respectively, while the rest were steady. Year over year, the grade in prices are mixed, with 100% Polyester Fabric up over 11.1%, but Raw Cotton is down in price at 2.5% while the rest are unchanged versus one year ago.

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, the grades in price were mixed in Q4. Except for Feldspar was unchanged, and Alumina and Quartz were down 10.8% and 2.6% respectively, while other grades in price were up slightly. Meanwhile, year over year, Soda Ash, Quartz Glass Grade Sand and Glaze are all down marginally while Kaolin and Feldspar are steady. Only Alumina is up 4.2% versus one year ago.

FUEL
Fuel prices in China were generally going down with LPG , Natural Gas and Diesel Oil were significant down in the range of 21% ~35% in the fourth quarter, and year over year, except for Petroleum is unchanged, Natural Gas is slightly down 7.4% and the rest fuels are down significantly in price between 26%~31% versus one year ago.

OCEAN FREIGHT
The World Container Index was slightly up 0.88% in the fourth quarter. Year over year, the World Container Index is sharply up 30% versus one year ago.

COST OF LABOR
Most of the Asian labor rates saw no change, except for India labor rates saw slightly up in the fourth quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.56%), Vietnam (up 6.13%), China (up 5.22%) while India labor rate is down 13.45%. Bangladesh is unchanged.

CURRENCY EXCHANGE RATE
For the fourth quarter, the USD was slightly weaker against the Bangladesh Taka, Vietnam Dong, Thailand Baht, Chinese Yuan, Indonesian Rupiah while slightly strength against Taiwan New Dollars, and India Rupees. Year over year, the biggest gains for the USD are against the India Rupees and followed by China RMB, Taiwan New Dollars, Indonesia Rupiah and Vietnam Dong and while its slightly weaker against the Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports was obviously down 15.85% and Exports was slightly down by 2.43% in the latest fourth months. Similarly, year over year, China Imports and Exports are down by almost 7.34% and 4.57% respectively.

– The China Producer Price Index (PPI) and the China Consumer Price Index (CPI) were both slightly down 3% and 0.59% respectively in the fourth quarter. Year over year, the China PPI is down 3.81% while the China CPI is up marginally versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and China PMI were both down slightly. Only Hong Kong PMI was slight down 0.21% in the fourth quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is unchanged versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.

Visit our website at:   http://www.sourceint.com/

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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ASIA MANUFACTURING COST DRIVERS REPORT Q3

Category:Cost Drivers Report,Education,Manufacturing Tags : 

The commodity price trends in the third quarter in Asia are mostly up. Many grades of Plastics, Rubber, Steel, Alum, Wood and Paper raw materials rose in price while some grades of Metals, Textiles and Ceramics went down in price. Petroleum and fuel prices were up in this quarter and labor rates were steady in the lower wage countries. The US Dollar rose moderately against most of the Asian currencies in Q3. China imports and exports saw up in the quarter. The China PPI was down slightly while the China CPI was up slightly. The PMI USA and Hong Kong indexes saw a slightly improvement in Q3 while PMI China saw a little marginally down. Below is a chart of the cost driver trends in 2018-Q3 and for all the details, please see the entire report.

si asia manufacturing cost drivers report 18Q3

ASIA MANUFACTURING COST DRIVERS REPORT DETAILS

PLASTICS & RUBBER
– All General Purpose plastic resin prices were up in the third quarter, PP(K8303) and Food Grade are up significantly (on average about 8.9%) and the others only up in price marginally. Year over year, PVC and PE prices are down 7.2% and 4.3% respectively. But most plastic prices remain up in price versus one year ago. PP (K8303) is up the most (close to 22%), followed by PP up 13.7% and PS up 9.6% while PET price is unchanged.
Source international cost drivers report 2018 Q3

– Engineering plastic prices were more mixed with Nylon and Nylon (PA6) and POM prices up by 6.6%, 5.4% and 4.1% respectively, while ABS and PU Foam prices were down slightly. Year over year, ABS up in price the most at 21.4% followed by Nylon up over 11% and the others only up in prices marginally, while ABS and PU Foam were down marginally in price versus one year ago.

– Most of the Rubber prices were up in Q3, BR saw a huge up in price, up over 22% and Latex, SCR5 and CR prices were all up over 5%. NBR is the only one which down marginally in price. EPDM price is unchanged. Year over year, CR and EPDM prices up sharply which are over 19% and BR and NBR up slightly, while Latex and SCR5 down marginally versus one year ago.
Source international cost drivers report 2018 Q3

METALS
– For the third quarter of 2018, most of the prices for Carbon Steel were up, with Steel Wire is up most which was over 12% followed Pig Iron was up 8.5%, others were up marginally. Only Hot Roll Steel Sheet in price was down a little. Year over year, the trend is all up with Cold Roll Steel Tube and Pig Iron up over14% and others up slightly.
Source international cost drivers report 2018 Q3

– In the Stainless Steel part, 201, 410 and 304 prices were up on average about 3% while 420 and 430 grade down a little in the third quarter. Year over year, the trend is down with most grades of stainless steel down in price on average about 9%. Except for 304 price is up 3.7%.

– All aluminum grades rose faintly in price in the third quarter. Year over year, all prices were down in price, with 6061 is down the most which is over by 27% followed 3003 and A00 down 13.6% and 11.1% respectively, and 1060 price is down marginally.
Source international cost drivers report 2018 Q3

– In Other Industrial Metals, all grades trend was down in Q3. Nickel’s price was down by 11%, followed Zinc down 7.2% in price and the rest of metals were down a little. Year over year, most of metals prices are up, with Nickel is up most (close to 14%) and Copper and Brass Rod are both up 2.6% while Zinc price is down 12.8% versus one year ago.
Source international cost drivers report 2018 Q3

WOOD, PAPER & TEXTILES
– Wood prices inched slightly higher in Q3 except Pine and MDF is steady in price. Year over year, MDF’s price increase over 13% and the others only up marginally.
Source international cost drivers report 2018 Q3

– Meanwhile most grades prices of Paper Materials were no change except for Corrugated Board price down 4.1% in the third quarter. Year over year, most of the paper prices are decreasing, with Corrugated Board down over 16% and others prices down a little. Only Art Paper is steady.
Source international cost drivers report 2018 Q3

– Textile fabric prices saw little change in the third quarter with Raw Cotton down slightly and the rest were unchanged. Year over year, the grade in prices are mixed, with Raw Cotton and Polyester Fabric up in price t at 2.4% and 0.3% respectively while the 100% Polyester Fabric and 100% Cotton Fabric are down marginally.
Source international cost drivers report 2018 Q3

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, only Alumina price was up over 23%, while in Feldspar, Soda Ash and Kaolin were down in price on average 4.6% and rest were down marginally. Year over year, Feldspar, Kaolin and Quartz are all up marginally while rest were down, with Soda Ash is down in price the most by 16%, followed by Alumina down 5.9%, Glass Grade Sand and Glaze were down slightly versus one year ago.

Source international cost drivers report 2018 Q3

FUEL
Fuel prices in China were generally going up with LPG and Diesel Oil were significant in the range of 25% ~32% in the third quarter, and year over year, except for Petroleum is unchanged, the rest fuels are up significantly in price between 21%~29% one year ago.

OCEAN FREIGHT
The World Container Index was up 13.7% in the third quarter. Year over year, the World Container Index was sharply up 31% versus one year ago.

COST OF LABOR
Asian labor rates saw no change in the third quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.6%), Vietnam (up 6.1%), China (up 5.2%) while India labor rate down 13.5%. Bangladesh was unchanged.

CURRENCY EXCHANGE RATE
For the third quarter, the USD is obviously strengthened slightly against the Thailand Baht, Chinese Yuan, Taiwan New Dollars, India Rupees, Indonesian Rupiah, Vietnam Dong and Bangladesh Taka. Year over year, the biggest gains for the USD are against the Indonesian Rupiah and India Rupees China RMB, Thailand Baht, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the China RMB and Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up by 11.36% & 4.61% respectively in the latest third months. Similarly, year over year, China Imports and Exports are up obviously by almost 15%.

– The China Producer Price Index (PPI) gone down 1.1% in the third quarter while the China Consumer Price Index (CPI) rose slightly. Year over year, the China PPI is down 3% while the China CPI is up slightly versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and Hong Kong PMI were both up slightly. Only China PMI was down 0.7% in the third quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.
Visit our Linked-In Page

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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EXPERIENCE THE FUTURE OF MANUFACTURING AND PRODUCT DEVELOPMENT

Category:Education,Metals

FABTECH 2018 – Manufacturing and Product Development Expo

Experience the future of manufacturing and product development. Join us at FABTECH from November 6-8 at the Georgia World Congress Center in Atlanta where the metal forming, fabricating, welding and finishing community come together to see what’s new and what’s next. Source International will be giving a presentation on Smart Manufacturing Product Development Process: Get to Market Faster on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM.

FABTECH is where connections are made and where deals get done. See cutting-edge exhibits, learn from expert-led education, network with peers and more,.Over 1,500 leading manufacturers all in one place with solutions aimed at increasing productivity and profitability. Bring your team to experience three action-packed days of hands–on demos, new product launches, education, and networking. Whatever you need to advance and move forward in manufacturing, you’ll find it at FABTECH.  With targeted technical, operational, economic and managerial sessions, you’ll discover the solutions you need to improve productivity and increase profits. Network with peers, learn from top industry experts, exchange best practices and explore the latest technology and advancements in the industry.

Contact us for more information and set up a meeting with us in Atlanta to learn how Source International’s supply programs can add value to your new product development efforts.

So register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!



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APICS 2018

Three Tips For Ensuring Quality At Outsourced Suppliers

Category:Education

APICS 2018 – Three Tips For Ensuring Quality At Outsourced Suppliers

Thanks to everyone who attended “Three Tips For Ensuring Quality At Outsourced Suppliers” at the 2018 APICS conference in Chicago October 2nd. The topic drew a great crowd with lots of good input and questions from the attendees. 

Ensuring quality At Outsourced Suppliers

EXCERPT: Manufacturing your company’s products at outsourced suppliers, whether onshore or offshore, isn’t just about lowering costs. Managing the quality of output among your outsourced suppliers is critical and can greatly impact your bottom line, your operational efficiencies, and your organization’s credibility. This session presents an aggressive, comprehensive three-step program to accurately assess the level of quality risk at an outsourced supplier; create effective, quality documentation that will ensure expectations are met on both sides; and to set up metrics that will measure supplier performance and provide a benchmarking system to gauge future improvement. By employing these three steps in a comprehensive and integrated program, your organization can effectively ensure the quality among your network of outsourced suppliers.

A copy of the presentation is available for download HERE.  Please feel free to share it. A lot is happening at APICS as they transition into life as ASCM.  FYI, the 2019 conference is scheduled to be in Las Vegas….hope to see you there!

And, please contact us for more information and to set up a meeting with us to learn how Source International’s supply programs can add value to your outsourcing efforts.

Also, please note that we’ll be presenting again at FABTECH in Atlanta on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM on Smart Manufacturing: Product Development Process: Get to Market Faster. Hope to see you in Atlanta!  Register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!

 


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sourceint.com

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Category:Awards,Valued Client News

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Aug. 25, Fujian Province, China.

Source International Xiamen Team held a fun summer party in the beautiful Ten Miles Blue Mountains of Fujian Province, which is famous for its sea of flowers and the air.

In the beautiful and fresh nature, the teams played three games. The first game was called kangaroo jump which need to put their feet into the bag. The second was “number convey game ” for testing everyone’s tacit understanding. The last and the most exciting game was “Rip the nametag off.

We feel the powerful force of energy, motivation, and teamwork. The championship team was awarded by Jeff.

We all drunk a toast to this happy time.

CONTACT US TO LEARN MORE ABOUT OUR SUPPLY MANAGEMENT PROGRAMS


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THIRD ROUND OF CHINA TARIFFS

Category:Education

CHINA TARIFFS UPDATE

July 10, 2018 -Trade Representative Robert Lighthizer has released a third list of thousands of additional goods that could face 10% china tariffs after a public comment period. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves. The move comes after the United States imposed the first round of 25% China tariffs worth $34 billion which kicked in July 6th. Beijing immediately responded with its own tariffs on US goods worth $34 billion. President Donald Trump in May directed Lighthizer to identify $200 billion in China product tariffs if China retaliated against US penalties that are meant to punish the country for intellectual property theft. The United States is already working on a second wave of China tariffs worth $16 billion. The third round of tariffs would go into effect sometime after August 30.

  • List 1 – Includes 818 tariff lines and is Valued at $34 billion worth of imports from China. Products falling under these tariff lines incur an additional duty of 25% beginning July 6.
  • List 2 – Includes 284 lines cover approximately $16 billion worth of imports from China. This list will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties of 25%.
  • List 3 – Includes 195 pages and thousands of lines amounting to approximately $200 billion in imports from China and covers some consumer products which had yet to be hit.
Feel free to download the lists from the three links above and contact Source International for more information.
AmChamChina has set up a US-China Trade Dispute Portal, which will be updated regularly and serve as a central source for all the China tariff resources, documentation, and analysis related to US-China trade relations.  https://www.amchamchina.org/news/trade-dispute-portal

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source international cost drivers report 2018 Q2

ASIA MANUFACTURING COST DRIVER REPORT, 2018 Q2

Category:Cost Drivers Report Tags : 

ASIA MANUFACTURING COST DRIVER REPORT, 2018 Q2

The ASIA MANUFACTURING COST of commodity price trends in the second quarter are mostly up across the board with a few rare exceptions. Most grades of plastics, industrial metals, paper, ceramic and glass raw materials all rose in price while only some grades of rubber and alumina for ceramic production were going down in price. Wood prices meanwhile remained mostly flat and Textiles prices were mixed. Petroleum and fuel prices were up in this quarter and labor rates inched up in the lower wage countries. The US Dollar rose a little bit against most of the Asian currencies in Q2. China exports saw up in the quarter while China imports were down. The China PPI was up slightly while the China CPI was down slightly. The PMI USA indexes saw steady improvement in Q2 and PMI China saw maintained while PMI Hong Kong was down significantly. Below is a chart of the general trends and for all the details, please see the entire report.

source international cost drivers report 2018 Q2

DETAILS

PLASTICS & RUBBER

The cost of the General Purpose plastic resin prices were up marginally in the second quarter with PP, PVC, PS, Food Grade PP, HIPS and HDPE and only PE (LD400) down in price by 2.0%. The PET remained steady. Year over year, the trends for most material were up. PP is up the most (close to 20.00%) followed by PP GP, PS, PVC and HIPS are all up over 8%, and HDPE and PE both up marginally and the PET is steady in prices versus one year ago.

source international cost drivers report 2018 Q2

ENGINEERING PLASTICS

Most of the Engineering plastic resin prices were up in second quarter with PC , POM and ABS marginally and only Nylon down in price by 2.6% , the others remains steady. Year over year, PP is up a whopping 28.9% followed by PC up over 10% and Nylon(PA66) and ABS relatively increase a little, while PU Foam is down by 4.5%.Nylon (PA6)is only grade which remains unchanged in price versus one year ago.

source international cost drivers report 2018 Q2

RUBBER

Most of the Rubber prices were down in Q2, Latex and CR are both down marginally and only NBR is up by 6.00%, while BR and EPDM are steady. Year over year, CR is up most (over 21%) followed by EPDM is up over 17% and others are all down with Latex and Nature Rubber down over 19% in price versus one year ago.

source international cost drivers report 2018 Q2

CARBON STEEL

– For the second quarter of 2018, most of Carbon Steels were up in price with Steel Wire up by 11.5% and the others up marginally. Hot Roll Sheet Tube is exception with a slightly decrease by 2.7% and Cold Roll Steel Tube and Pig Iron is steady. Year over year, the trend is all grades of Carbon Steel go up in price with Pig Iron and Cold Roll Steel Tube up over 23% following by Hot Roll Steel Sheet and Hot Roll Steel Tube up by 18.9% & 17.6%, and the rest are go up all over 8% in price.

source international cost drivers report 2018 Q2

STAINLESS STEEL

In Stainless Steel, most grades were down in price between 2% – 7% with #403 down the most while #304&#201 up a little in the second quarter. Year over year, the trend remains up with most grades of stainless steel up in price on average about 9% versus one year ago except for #410 down by 3.3%.

source international cost drivers report 2018 Q2

ALUMINUM

Most aluminum grades rose in price in the second quarter while Aluminum 6061 were down close to 6%, and year over year, Aluminum 6061 go down in price by almost 22% and Aluminum 3303 down by 4.9%, while A00 and Aluminum 1060 are slightly increased in price.

asia manufacturing cost drivers 2018 Q2

INDUSTRIAL METALS

In Other Industrial Metals, only Zinc price was down in Q2 while Nickel was up most (close to 22%) and the rest of metals were up marginally. Year over year, all grades of the prices are up especially Nickel is surged by 54.6% in price versus one year ago.

source international cost drivers report 2018 Q2

WOOD

Wood prices are remaining steady in Q2. Year over year, MDF’s price is up over 15% and the others only upmarginally.

asia manufacturing cost

PAPER

Most of Paper Materials were up in price in the second quarter with Corrugated Board up in price by 7.8% followed by Kraft Paper, White Cardboard and Gray Cardboard are up marginally and only ArtP aper decreased by 2%. Year-over-year,Corrugated Board and Kraft Paper prices are still higher  up by 29.3% and 18.7% respectively. The others are up marginally except for Art Paper is unchanged in price versus one year ago.

asia manufacturing cost drivers 2018 Q2

TEXTILES

Textile fabric prices saw mixed in the second quarter with 100% Polyester fabric is down over 5% while Raw Cotton is up over 5% and the rest were unchanged. Year over year, all prices is up slightly which 100% Polyester Fabric is up by 8.1% and Raw Cotton andNon-woven PP Fabric are both up over 4% in price versus one yearago.

asia manufacturing cost drivers 2018 Q2

CERAMIC AND GLASS RAW MATERIALS

In Ceramic Raw Materials, only Alumina’s price was down slightly, while in Glass Raw Materials Soda Ash was up in price over 15% and Glass Sand remain steady. Year over year, the trend of all price is up and the Soda Ash is up most (close to 26%) followed by Feldspar and Kaolin is up on average 14% and the rest up marginally versus one year ago.

asia manufacturing cost drivers 2018 Q2

FUEL

Fuel prices in China were generally going up in the range of 13% except for China Petroleum is remain steady in the second quarter, and year over year, most of fuels are up significantly high which is up on average 35% versus one year ago except for China Petroleum remained steady. Fuel is an important part of asia manufacturing cost.

OCEAN FREIGHT

Ocean freight rates went up sharply in Q2. Year over year, the average composite index of the WCI, is US $1,375/40ft container, which is $157 lower than the five-year average of $1,532/40ft container all adding to the Asia manufacturing cost.

COST OF LABOR

Most of Asian labor rates saw unchanged while only China labor is up by 5.2% in the second quarter adding to Asia manufacturing costs.  Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Vietnam, Thailand and China are both up over 5% while Bangladesh saw no change. Cost of labor in India is down significant by 13.5% versus one year ago.

CURRENCY EXCHANGE RATE

For the second quarter, the USD strengthened slightly against the Chinese Yuan, Thai Baht, Bangladesh Taka, India Rupees, Indonesia Rupiah, Taiwan New Dollars and Vietnamese Dong with the Thai Baht, Chinese Yuan, India Rupees and Taiwan New Dollars stronger by over 5%. Year over year, the biggest gains for the USD are against the Indonesia Rupiah and India Rupees while its slightly weaker against the Chinese Yuan and Thai Baht adding to the overall Asia manufacturing cost.

CHINA TRADE (Data lags by one month)

China Imports was decreased by 7.31% while Exports was up by 1.83% in the latest three months. Year over year, China Exports are up by 2% and China Imports are down by over8%. The China Producer Price Index (PPI) is up slightly in the second quarter while the China Consumer Price Index (CPI) down slightly. Year over year, the China PPI is decreased slightly while the China CPI is up slightly versus one yearago.

PURCHASING MANAGERS INDEX (PMI)

Hong Kong PMI is down by over 8% and USA PMI is up slightly. Only China PMI is unchanged in the second quarter. Year over year, China PMI and Hong Kong PMI is down slightly with HK down by over 5% and USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing cost drivers. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 30 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.   Our Asia manufacturing cost driver report is one example how we can add value and make your supply chain in Asia run more efficiently and consistently.

For additional details, please contact one of our Operations Specialists about Asia manufacturing cost.    If you have any suggestions about additions or changes to this report, we’d love your feedback. Thank you for your support.

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Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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shipping containers

SECOND ROUND OF CHINA PRODUCT TARIFFS

Category:Education Tags : 

SECTION 301 & 232 TARIFFS UPDATE

March 8, 2018 – Presidential Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States providing for additional 25% and 10% duties for steel mill and aluminum articles, effective March 23, 2018.

June 15, 2018 – Office of the United States Trade Representative (USTR) issued press release announcing its intent to impose additional tariffs on products imported from China. The additional tariffs are part of the U.S. response to China’s unfair trade practices related to “the forced transfer of American technology and intellectual property”.

List 1 – Includes 818 tariff lines and is Valued at $34 billion worth of imports from China. Products falling under these tariff lines incur an additional duty of 25% beginning July 6.
List 2 – Consists of 284 new tariff lines identified by the interagency Section 301 Committee as “benefiting from Chinese industrial policies, including the “Made in China 2025″ industrial policy”.  These 284 lines cover approximately $16 billion worth of imports from China. This list will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties of 25%.
Feel free to download the lists from the two links above and contact Source International for more information.
And read more about the tariffs and their impacts on US businesses in this recent Industry Week article.
AmChamChina has set up a US-China Trade Dispute Portal, which will be updated regularly and serve as a central source for all the resources, documentation, and analysis related to US-China trade relations.  https://www.amchamchina.org/news/trade-dispute-portal

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Ceramic Industry Supplier of the Year Award

CERAMIC INDUSTRY SUPPLIER OF THE YEAR AWARD

Category:Awards,Valued Client News

The 2018 Ceramic Industry Supplier of the Year is Source International

By Susan Sutton, Editor-in-Chief

Manufacturers in the ceramic, glass, refractories, brick and related industries rely on the dedicated support of a multitude of suppliers in order to be successful. Ceramic Industry offers manufacturers the opportunity to acknowledge their valued suppliers by nominating them for our annual Supplier of the Year Award. Nominees are evaluated on a number of different qualities, including responsiveness, product options, reliability and overall performance (among others).  I’m excited to share the news that the 2018 Ceramic Industry Supplier of the Year is Source International!

Supplier of the Year

Source International (SI) was nominated by Mike Bunge, director of Global Resources for Libbey Inc. In his nomination, Bunge writes, “SI has helped us to remove multiple barriers in our supply chain through proprietary systems that provide far greater visibility into lead times, service levels, quality levels, and pricing.”

According to Bunge, who also nominated SI for last year’s Supplier of the Year Award, the company serves as Libbey’s agent in Asia providing bilingual personnel who are available to assist with operations, logistics and supply chain issues, including product development and engineering, the monitoring of manufacturing processes, and social responsibility and quality compliance.

“Source International helps us execute globally,” says Bunge. “It’s very difficult to have boots on the ground in many regions. It becomes quite expensive. But the Source International reps are knowledgeable regarding common processes and procedures, and are further trained on our specific products and processes.”

Supplier of the year

 Supplier of the Year

SI is a 30-year-old manufacturing and supply management company with about 80 employees. According to Jim Ullum, managing partner, the company has been working with Libbey for 10 years. A dedicated team, comprising merchandisers, engineers, quality technicians, among others, works directly with Libbey to ensure smooth operations that result in quality products.

“Our motto is, we create partnerships for our customers’ success,” says Ullum. “We become an extension of our customers. We don’t work for the suppliers; we work for Libbey. Everything we do is in concert with what they want to do and what their goals are. We feel like we’re Libbey employees, even though technically we aren’t.”

Supplier of the year

According to Bunge, SI’s size makes the company an ideal supplier for Libbey’s needs—large enough to provide the scope of support required while small enough to be flexible and adaptable when processes and procedures change. “I’m a big supporter of theirs because they’ve helped me, my team and our organization,” he says. “They’ve helped me and my team look good—internally to our organization—and they’ve helped our organization compete better on a global scale.”


Supplier of the Year

Ceramic Industry publisher Tom Fowler presented Source International with the 2018 Supplier of the Year Award on May 1, 2018 live from the show floor at Ceramics Expo in Cleveland.  Joe Simon, VP Finance, represented SI and Ryan Routhe, QA/Materials Engineer, Global Sourcing represented Libbey at the awards ceremony.  Ryan commented that SI helps Libbey to deliver great products to our customers….they are our feet and eyes and ears in the factories and take projects from beginning to end…just a great asset.  Joe thanked Libbey and Ceramic Industry on behalf of Source International for the award and gave special accolades to the SI team in Asia which are the “boots on the ground” and that helps Libbey deliver quality products, on time using the proprietary database operating system (SIS) where customers can monitor the status of its products in real time 24/7.

To view a video of the presentation, please follow this link:

Ceramic Industry Supplier of the Year Award Video

For more information on Source International and the supply management services offerings please contact us to speak with one of our Operations Executives.


Who We Are

Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices to understand better our procedures & the scale of our operations.

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