Global economy continues to weaken as February data shows significantly fewer manufacturers shipping to the US.
Underscoring President Obama’s recent report cautioning that the United States was unlikely to return to its role as a “voracious consumer market,” Panjiva, an objective information source on global manufacturers, today released data highlighting that the number of global manufacturers shipping to the US declined 10% from January 2009 to February 2009.
Panjiva’s Watch List, which is published as part of the company’s premier Panjiva Alerts service, also shows an increase in the number of “significant manufacturers” who have suffered a 50% or greater decline in volume shipped to American customers in the most recent three-month period, versus the same period a year ago. A “significant manufacturer” is defined as those who send 10 or more shipments a year. Of the world’s significant manufacturers, 29% are currently on Panjiva’s Watch List.
As global manufacturers suffer, many US companies face significant risk of supply chain disruptions. Of the “significant US buyers”—those that receive 10 or more shipments a year—40% have recently done business with a troubled manufacturer on Panjiva’s Watch List.
According to Panjiva CEO Josh Green, “The steep drop-off in companies shipping to the US suggests that the global economy has not yet hit bottom. In fact, things appear to be getting worse—at an accelerating pace—for the global manufacturers who count on US companies for orders. Meanwhile, the risk that US companies will be hit by supply chain disruptions is increasing, as more and more factories appear to be moving to the brink of insolvency.”