OEM Insights ~ August 1

Supply Dynamics’ OEM Insights

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Take a look at this week's roundup of the most current and compelling industry news, updates, and trends related to OEMs and anything that impacts them. Read on to discover the latest in:

1. Industry News: 5G Technology & The Manufacturing Supply Chain
2. Trade War: Trump Warns China Not To Wait Until 2020 
3. Metal Trends & Market Analysis: The Rise (& Fall) of Nickel 

• 5G Technology & The Manufacturing Supply Chain: According to recent Capgemini research, 75% of industrial companies believe that 5G will be a key enabler for their digital transformation in the next five years. Supply Chain Digital outlines the four key factors for manufacturers to consider when creating their 5G roadmap. (Supply Chain Digital)
• Durable Goods Rose in June: Overall orders for durable goods—manufactured products intended to last at least three years—rose 2% in June from the previous month, the fastest rate of growth since August 2018. Economists surveyed by The Wall Street Journal had expected a 0.5% increase. (WSJ)

Trade War

• Trump Warns China Not To Wait: As negotiations resumed this week in Shanghai, President Trump cautioned China not to delay in finalizing a trade deal until after the 2020 presidential election. In a series of tweets on Tuesday (7/30), Trump stated that "the problem with them waiting ... is that if & when I win, the deal that they get will be much tougher than what we are negotiating now...or no deal at all.” (CNN)

• China Makes Concession on US Farm Goods in "Frank" and "Constructive" Talks: China has agreed to buy more agricultural goods from the United States after “frank, efficient, and constructive” trade talks on Wednesday (7/31), the first between the two countries’ top negotiators since discussions were suspended in May. Chinese negotiators will travel to Washington to continue negotiations “on an enforceable trade deal” in early September. (South China Morning Post) 

Metal Trends & Market Analysis

• Nickel: The three-month nickel price on the London Metal Exchange climbed by 1.4% at the close of trading yesterday (7/31), shaking off recent downward momentum emanating from an expected US Federal Reserve interest rate cut and subsequent dollar incline. Nickel prices rose to a one-year high—3.5% to $14,955 a metric ton—in mid-July (7/18), boosted by constricting supply and bullish speculators. (Metal Bulletin & WSJ)
• Metals M&A Declines: According to PricewaterhouseCoopers' latest Global Metals Deals Insight report, global metals mergers and acquisitions increased in volume in the second quarter, but, as political uncertainties, trade negotiations and tariffs impacted activity, their value declined. Deal value in Q2 was $5.3 billion, a decrease of 68% on-year, while volume increased 1% to 143 deals. (Kallanish)

About Supply Dynamics: Supply Dynamics provides dozens of Fortune 500 manufacturers with real-time visibility and control over the material requirements of their extended supply chain. Our innovative supply chain analytics solutions allow our customers to improve efficiency and predictability and to reduce the cost of raw materials and component parts that go into their products. To learn more, visit www.supplydynamics.com.