APICS e-News

Many manufacturers are considering the decision to cease overseas production and return to domestic manufacturing. The total cost of doing business offshore is an important part of this decision.

In March, an explosion occurred at the German factory that makes much of the world’s supply of PA-12 (also known as Nylon-12), a resin used in the manufacture of fuel lines and other automobile parts. It was feared that many manufacturing facilities would be forced to close due to shortages of the resin. But the Associated Press reports that Ford decision makers are confident that factories will continue production, thanks to substitutes for PA-12.

Researchers at Japanese manufacturer Hitachi have developed an electric motor that does not require rare-earth minerals in its construction, with the aim of cutting costs and lessening dependence on China.

Orders for durable goods in the United States went up 2.2 percent in February after a steep drop in January, the Associated Press reports. Heavy demand for machinery, computers, automobiles, and aircraft fueled much of the increase. Durable goods are those expected to last at least three years, and orders can fluctuate sharply from month to month; however, durable goods orders have been rising steadily for the past three years.

Intel has fallen behind in the mobile industry, as many popular mobile devices, such as Apple's iPad, are based on technology from rival ARM Holdings. But Intel's new Medfield chip will be used in a couple of upcoming smartphones from Lenovo, Motorola, and other manufacturers, which has made Wall Street optimistic about the microchip manufacturer.

Leaders at Toyota say they will have established a resilient supply chain by autumn, one that could recover from a massive earthquake within two weeks.

Headlines: Counterfeit Drugs a Growing Problem in the United States, Apple CEO Tim Cook Responds to Labor Concerns, The Five Hottest Logistics Careers.

The United States experienced unexpectedly strong automotive sales in January 2012. The auto industry's annual selling rate reached 14.18 million, the highest in more than two years. Overall car sales rose 19.9 percent, and truck sales increased 3.7 percent.

A survey conducted by the Business Continuity Institute and sponsored by Zurich Financial Services reveals that 85 percent of companies reported at least one supply chain disruption in the last 12 months. Companies across 62 countries participated in the survey.

According to the US Food and Drug Administration, early notification enables companies to respond to imminent shortages by ramping up production to boost supplies. These warnings prevented 137 shortages in two years.

The aircraft giant Boeing subjects its about 1,000 suppliers to extensive reviews of production materials, schedules, finances, and tools. Its skill at stress-testing is critical as the company faces a large number of backlogged orders.

Apple has released its sixth annual supplier responsibility report, one likely to be scrutinized by critics and competitors alike. For the first time, the names of 156 Apple subcontractors were revealed, representing 97 percent of Apple's supply chain.