Category Archives: Afternoon Coffee

Afternoon Coffee: Takata Raises Cost of Airbag Recall, US Economic Confidence Low in April

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Takata is now estimating the total cost of its airbag recall will be $189 million, more than the auto parts supplier had previously set aside. Takata said Monday it raised its provisions by about $156 million after reviewing recall costs. About $32.88 million will also go toward settlement claims related to accidents involving defective airbags. And, U.S. economic confidence fell in April, according to the Gallup Economic Confidence Index, which averaged -14 for the month. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Manufacturing Sector Expands in April, Nissan Recall 3.2M Cars in US

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The U.S. manufacturing sector grew in April for the second straight month, the Institute for Supply Management reported today. The ISM April PMI came in at 50.8, down from the 51.8 in March, but still showing signs of expansion. And, Nissan is recalling about 3.2 million vehicles in the Unites States due to problems with the front-passenger airbag. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Supply Chain Managers Face Ransomware Threat, Consumer Spending Weak in March

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Supply chain managers in the U.S. and Canada have been warned of possible “ransomware” attacks that could lead to supply chain disruptions. The attacks involve hackers stealing company data until they are paid a ransom. And, consumer spending rose less than expected in March, increasing just 0.1%, the Commerce Department reported. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: GDP Grows Just 0.5% in Q1, Consumer Comfort Index Rises

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U.S. gross domestic product increased 0.5% in the first quarter of the year, the Bureau of Economic Analysis reported today. The subdued growth in GDP reflected a dip in consumer spending and business investment as well as a deceleration in government spending. U.S. consumer confidence has more recently improved, however. The Bloomberg Consumer Comfort Index grew in the last week to 43.4 as consumers felt more optimistic about their finances and look to buy goods and services in the near future. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Apple Quarterly Results Impact Suppliers, US Steel Files Complaint Against Chinese Steel Producers

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Apple suppliers took a hit this week after the tech giant reported lackluster quarterly results and announced it would cut inventory by $2 billion. For example, shares of suppliers Skyworks Solutions and NXP Semiconductors fell more than 5% and 2%, respectively, on Tuesday. And, U.S. Steel filed a complaint against Chinese steel producers, saying they conspired on fixed prices, stole trade secrets and skirted duties on imports in the U.S. by using false labeling. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: US Service Sector Grows Slightly in April, Execs Optimistic About 2016 M&A Activity

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The U.S. service sector saw only modest growth in April, with the Markit Flash U.S. Services PMI Business Activity Index increasing to 52.1 compared to the 51.3 in March. “Subdued” client demand and less than ideal economic conditions reportedly contributed to the weaker growth. And, EY's new Global Capital Confidence Barometer showed 57% of companies that responded to a survey said they are planning to pursue an acquisition over the next year, and about 48% are planning to develop alliances with competitors or industry peers to achieve growth. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: 80,000 Toyota Cars Impacted by Japan Earthquakes, Target Tests New Food Transparency Sell Tactic

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Toyota estimates a loss of 80,000 cars from the shutdowns in production in Japan following the recent earthquakes. Hiroji Onishi, Toyota’s senior managing officer for China, said the carmaker is not sure when or if it will be able to recoup that lost output. And,Target is testing a new way to sell food by providing customers with a high level of transparency into the produce they buy. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Uber Drivers Remain Independent Contractors, PMI Hits 6-Year Low

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Uber will continue classifying its drivers as independent contractors, not employees, as part of settlements in two class action lawsuits brought against the company in California and Massachusetts. Uber will pay as much as $100 million to drivers in the case as part of the settlement. And, the flash manufacturing purchasing managers index (PMI) fell in April to its lowest level in six-and-a-half years. The index reached 50.8 in April, down from 51.5 in March. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Toyota to Reopen Japan Auto Plants Next Week, Mitsubishi Admits to Falsifying Fuel Economy Data

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Toyota Motor Corp. said it would reopen its Japan plants next week after shutting down operations following the recent earthquakes. The carmaker said it would resume production at 18 assembly lines between April 25 and April 28. And, Mitsubishi Motors admitted it falsified fuel economy data on more than 600,000 cars it sold in Japan. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: US Crude Production Sinks, Iran Struggling to Export Oil

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U.S. crude oil production fell last week to its lowest level since October 2014, reaching 8.95 million barrels a day, the Energy Information Administration reported. The number of oil rigs operating also was down to November 2009 levels. And, Iran is reportedly facing some challenges in exporting its oil as many of its tankers are unsuitable for the sea and foreign shippers are not willing to ship Iranian cargo. Afternoon Coffee brings you the latest in procurement and supply chain news.

Afternoon Coffee: Apple Cuts iPhone Production Again; AB InBev Accepts Offer for Peroni, Grolsch

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Suppliers of parts for the iPhone reported Apple will continue its reduced production of its flagship product in the second quarter. Anheuser-Busch InBev accepted an offer just below $3 billion for SABMiller’s premium brands, a move that aims to ease regulatory approval for AB InBev’s pending acquisition of its largest competitor. Afternoon Coffee brings you the latest in procurement and supply chain.