Operations Management Outlook - Apics

27 Pages·2009·2.94 MB·English

Operations Management
Outlook
APICS Connection Live
May 19, 2009
The Economy
Employment Trend
In the last 16 months, the U.S. economy has lost 5.7 million jobs.
1990 Recession
2001 Recession
February 2009
Recent Headlines
Caterpillar Speeds Up Layoff Plans
–Associated Press
Alcoa Reaches Deal To Save Jobs, Cuts Aluminum Output
-Wall Street Journal
UK Manufacturers Report Pay Freezes, Deferments
-Financial Times
Honda North America Announces Production, Pay Cuts
-Wall Street Journal
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The Economic Outlook
Recent Headlines
Firms Race to Regain Control over Inventories
–Wall Street Journal
Manufacturing Crash Empties Inventories, Sets Stage for Rebound
- Bloomberg
Economy Sinks Under Weight of Inventory
-Washington Post
Durable Goods Orders Unexpectedly Rise 3.4 Percent
-Bloomberg
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Employment Outlook –Who Is
Hardest Hit Nationally? (3/09)
• In March 2009, states with the highest unemployment were
– Michigan 12.6 percent
– Oregon 12.1 percent
– South Carolina 11.4 percent
– California 11.2 percent *
– North Carolina 10.8 percent *
– Rhode Island 10.5 percent
– Nevada 10.4 percent
– Indiana 10.0 percent
* Unemployment rates are the highest on record for these states.
(All state series began in 1976.)
Source: http://www.bls.gov/news.release/laus.nr0.htm
Unemployment Trend Is
Improving- But Difficulties Remain
• The Conference Board Employment Trends Index (ETI)
"While we see a continued sharp fall in the ETI, the decline was not as strong as in
the previous four months, suggesting that the most intense stage of job losses
may be behind us…”
Source: www.conference-board.org/economics/employment.cfm
• ISM April 2009 Report on Business Survey RESPONDENTS ARE SAYING ...
– "International customers are having trouble getting cash for new orders, even
though they need/want the equipment." (Computer & Electronic Products)
– "Starting to see some signs of increased production and demand from some
automotive customers." (Fabricated Metal Products)
– "Business conditions continue to be soft, but agriculture-related products are still
quite bullish." (Machinery)
– "We are optimistic that things will change for the better in 3Q." (Chemical
Products)
– "Starting to hear of slight upticks in orders from some sectors of our business but
not all." (Electrical Equipment, Appliances & Components)
Source: www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942
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APICS Support
APICS Support
• In 2009, we added services and content to help
members navigate this economy.
– Enhanced APICS magazine and Operations Management Now editorial
coverage of the economy
– Continued distribution of economy related APICS content to higher level
executives
– Extended unemployed member benefits to up to 18 months to help our members
– Developed a strategy for increasing Career Center job postings
– Engaged career coach
– Updated Market Yourself
– Created a new e-membership option for young professionals
– Collaborated with the Supply Chain Council
– Launched a presence on Facebook, LinkedIn, and YouTube
– Developed the new, quarterly APICS Compensation and Employment Outlook
Survey
– Expanded the focus of APICS to industries outside manufacturing
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