OEM Insights ~ August 13

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: AI Augmentation Will Create $2.9 Trillion of Business Value in 2021
2. Trade War & Global Relations: Fears Rise—Trade War Could Lead to a Recession
3. Metal Trends & Market Analysis: The Consequences of Copper's Fall & Monthly Titanium Review 

Industry News

• AI Augmentation Will Create $2.9 Trillion of Business Value in 2021: According to Gartner, artificial intelligence (AI) augmentation will create $2.9 trillion of business value in 2021 and 6.2 billion hours of worker productivity globally. Gartner defines augmented intelligence as a human-centered partnership model of people and AI working together to enhance cognitive performance. (Gartner)
• Heavy-Duty Truck Orders Hit Lowest Level in Nine Years: Orders for Class 8 trucks fell last month to their lowest level since 2010, transportation-equipment research groups said. The July figure is the weakest yet since a strong rebound in truck-buying in 2018 lost steam this year on faltering freight-market demand. (WSJ)

Trade War & Global Relations 

• Fears Rise—Trade War Could Lead to a Recession: Goldman Sachs Group Inc. said on Sunday (8/11) that fears of the U.S.-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world’s two largest economies before the 2020 U.S. presidential election. (Reuters)

• South Korea Downgrades Trade Ties with Japan: South Korea is removing Japan from a list of trusted trading partners, escalating a dispute with its neighbor that is already disrupting the global supply chain for big tech companies. The downgrade means South Korean companies exporting to Japan will have to complete more documents, allow more time for approvals, and get used to shorter lifespans for permits. (CNN Business)

Metal Trends & Market Analysis

• Fall in Copper Prices Threatens to Drive Metal Shortages: The recent slide in copper prices—now about 14% below the $3-a-pound level that investors say makes many long-term projects viable—is threatening to limit investment in new mines, a trend that industry analysts and executives say could lead in coming years to sizable shortages of the material critical to manufacturing and renewable-energy projects. (WSJ)
• The Monthly Titanium Review (from LONGBOW Research): Longbow’s Call—There was no "smoking gun" uncovered during recent checks on the titanium market to suggest imminent channel weakness or downside risk versus current expectations. Some of the red flags we are tracking include a 2-3-week contraction in producer lead times, the negative inventory outlook conveyed by an increasing number of distribution contacts, and the reversal in spot market prices. Access Longbow's Key Takeaways here. 
  
  

About Supply Dynamics

Supply Dynamics provides leading Fortune 500 manufacturers with real-time visibility and control over the “material-input” requirements (metals, plastics, electronics, etc.) of their extended supply chain. Our innovative supply chain analytics solutions allow our customers to reduce the cost of raw materials and component parts that go into their products, enhance collaboration with supply chain stakeholders, and ensure that the timely purchase and supply of material-inputs is never the reason a part is late. To learn more, visit www.supplydynamics.com.