May 16, 2020

Indian government considering Apple’s New Dehli plant proposal

Apple
New Delhi
Indian government
India
Jonathan Dyble
2 min
New Delhi
The Indian government is currently considering Apple’s latest proposal for a manufacturing plant in New Delhi, Union Minister Alphons Kannanthanam rev...

The Indian government is currently considering Apple’s latest proposal for a manufacturing plant in New Delhi, Union Minister Alphons Kannanthanam revealed.

Apple is looking to expand its operations in India due to it being the firm’s fastest growing market. However, although the Indian government is keen for the US tech firm to set up shop in the country, Apple is reportedly seeking a number of concessions for setting up a manufacturing unit there.

"We would like Apple to come in India and we are examining Apple's proposal," said the Minister of State for Electronics and IT.

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Concessions that the company is after include duty exemption on the manufacture of smart phone repair units, components, equipment and consumables for a 15-year period, in addition to a relaxation of the mandatory requirement that 30% of components be sourced locally.

Such concessions seem demanding, but Apple will likely bring more to the economy than just a single manufacturing plant should they be granted.

Apple has no wholly-owned store across India, selling many of its products through distributors including Redington and Ingram Micro. However, should the company build a manufacturing unit there then this would likely change.

Whether or not this will go ahead remains to be seen, as the then Commerce and Industry Minister, Nirmala Sitharaman, previously stated that Apples demands would not accepted back in March.

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May 4, 2021

IHS Markit/CIPS: UK Manufacturing PMI near-record high

Supplychain
Manufacturing
IHSMarkit
CIPS
Georgia Wilson
3 min
Manufacturing UK | Smart Manufacturing | Industry Trends | Supply Chain | COVID-19 | IHS Markit | CIPS
Latest IHS Markit/CIPS UK Manufacturing PMI statistics report a near-record high in April, despite the sector continuing to face supply chain disruption...

Riding on the momentum of March 2021 which saw the fastest output growth since late-2020, IHS Markit/CIPS reports a further acceleration in the rate of expansion in the UK manufacturing sector for April 2021.

UK manufacturing trends

For the UK manufacturing sector, growth of output and new orders were both reported by IHS Markit and CIPS as among the best seen over the past seven years, which in turn has led to a strong increase in employment. Despite this, the sector continues to face supply chain delays and input shortages, which resulted in increased purchasing costs and record selling price inflation.

UK Manufacturing IHS Markit/CIPS Purchasing Managers’ Index® (PMI®)

Seasonally adjusted, IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) rose to 60.9 in April, which was an increase compared to March (58.9) and above the estimated 60.7 for April. 

Increasing for the eleventh consecutive month, the latest readings are the highest since July 1994 (61.0). The output growth for April has been attributed to the loosening of lockdown restrictions, improving demands and a rise in backlogged work.

“The manufacturing sector was flooded with optimism in April as the PMI rose to its highest level since July 1994, bolstered by strong levels of new orders and the end of lockdown restrictions opened the gates to business. It was primarily the home market that fuelled this upsurge in activity though more work from the US, Europe and China demonstrated there were also improvements in the global economy. This boom largely benefited corporates as output growth at small-scale producers continued to lag behind,” said Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply.

In addition to expanding production, total new orders rose for its third consecutive month, which was attributed to a revival of domestic market conditions, stronger client confidence, parts of the economy reopening and improving global market conditions.

While new exports rose in April, the rate was reported as weaker in comparison to new orders. “Companies reported improved new work intakes from several trading partners, including mainland Europe, the US, China and South-East Asia. Large-sized manufacturers saw a substantial expansion in new export order intakes, compared to only a marginal rise at small-sized firms,” said IHS Markit/CIPS.

UK Manufacturing’s outlook

Remaining positive at the start of the second quarter, 66% of companies forecast that output will be higher in a year's time, which is attributed to expectations for less disruption related to COVID-19 and Brexit, economic recovery, improved client confidence and new product launches.

“Further loosening of COVID-19 restrictions at home and abroad led to another marked growth spurt at UK factories. The headline PMI rose to a near 27-year high, as output and new orders expanded at increased rates. The outlook for the sector is also increasingly positive, with two-thirds of manufacturers expecting output to be higher in one year’s time. Export growth remains relatively subdued, however, as small manufacturers struggle to export,” said Rob Dobson, Director at IHS Markit.

Adding to comments from IHS Markit and CIPS, Sarah Banks, Managing Director of Freight and Logistics at Accenture Global said: “While today’s figures are positive overall, the worsening supply situation is still a concern, with rates of both input costs and selling price inflation running far above anything previously seen. Shipping delays and material shortages are driving huge backlogs of uncompleted work and the surge in manufacturing orders is leading to many firms struggling to boost operating capacity to keep up with demand. With business expectations becoming even more optimistic as the economy rebounds, the big question will be whether firms will be able to cope with the surging inflows of new orders.

“As ongoing supply chain issues are still at large, companies with wide international footprints should look to reassess their logistics strategies by running supply chain stress tests and simulations in order to respond quickly to upswings and variability in demand. A flexible and resilient supply chain will be a key way for businesses to remain both competitive and stable as we emerge from the pandemic” 

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