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Is Nearshoring the Future of the American Supply Chain?

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Angela Velasquez reports for Sourcing Journal that the combination of coronavirus and the Trump administration's USMCA could lead to greater "nearshoring," a term describing supply-chain sourcing from nearby countries, with Mexico. She writes: Though the denim industry faces unprecedented challenges, executives from leading Mexico-based mills are planning for a brighter future. As denim mills in the country prepare to reopen on June 1, Tricia Carey, Lenzing’s director of global business development for denim, gathered players from Cone Denim, Global Denim, Kaltex and Tavex for a virtual … [Read more...]

Walmart Sales Soar as Americans Stock Up

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As shutdown orders have closed other retailers without grocery stores attached, Walmart has been the only place open to many would-be shoppers. Walmart's sales have surged during the coronavirus shutdown. Sarah Nassauer writes in The Wall Street Journal: Walmart Inc. WMT +0.54% is reaping the rewards of being one of few retailers positioned to successfully navigate a global pandemic, reporting a surge in quarterly sales as consumers turned to its giant stores to stock up on food and household goods. The country’s largest retailer said U.S. comparable sales, those from stores and digital … [Read more...]

Coronavirus is Amazon’s Cleanup Crew

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After Amazon set about decimating retail competitors across America, coronavirus has come along and helped it finish the job. Suzanne Kapner and Sarah Nassauer report in The Wall Street Journal: Amazon. AMZN 0.68% com hurt many retailers. Coronavirus will finish some of them off. Even as malls and stores begin to reopen, the Covid-19 pandemic has taken a toll on an industry already battered by the shift to online shopping. More than two million retail jobs disappeared in April as many stores closed. The damage will be clear Friday when the U.S. government reports what is expected to be one … [Read more...]

Here Comes the Milkman

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Customers eager for delivered products are driving a resurgence in a long-dying business, milk delivery. Rachel Feintzeig reports for the Wall Street Journal: The glass bottles are gone. The cream-topped milk of yore has been replaced by oat milk, almond milk and even a Snickers-flavored drink. But the milkman is back, summoned by customers eager for home delivery in a world changed by pandemic. At Wade’s Dairy in Bridgeport, Conn., the novel coronavirus has turned demand on its head and opened the door to a new—old—business idea. Wade’s had previously spent a century offering home … [Read more...]

Investors Flock to Chinese Distribution Facilities

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The Nikkei Asian Review's Taizo Wada reports that investors are putting money into Chinese logistical real estate, writing: As China shakes off the economic impact of the coronavirus outbreak, investors have flocked to funds focused on logistics facilities there and elsewhere in Asia, anticipating that growth in e-commerce will drive strong demand even after the pandemic. Singapore-based GLP last month closed a $2.1 billion fund with a portfolio of 34 properties across 18 Chinese cities. Participants include seven Chinese institutional investors, six of which are new clients of the … [Read more...]

Here’s Why Commercial Food and Supplies Aren’t Making it to Your Grocery Store

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With most Americans now banned from eating in restaurants or going to many businesses where they might consume products, they are attempting to find those products at their local groceries for home consumption. Despite reports of vegetables being plowed under and milk being poured out by farmers who can't sell them, Americans instead find bare shelves. Jennifer Smith explains why in The Wall Street Journal: Images of empty supermarket shelves—while farmers dump milk and other foodstuffs—are delivering a stark lesson in the challenges of shifting goods from commercial to consumer supply chains … [Read more...]

Chinese Jeans Shipments to America Plummet

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Arthur Friedman reports that shipments of denim jeans to America from China have plummeted by 63% in the first two months of 2020. He writes: U.S. denim imports were down significantly in the first two months of the year, and March portends to be nothing short of a disaster. U.S. companies imported 14.32 percent less blue denim apparel–97 percent of which is jeans–for the year to date through February for a value of $497.08 million. The drop-off was led by a 63 percent decline from China to $55.77 million, as factories shut down as coronavirus swept through the country. Many of those … [Read more...]

Japan Paying its Corporations to Leave China

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The Japanese government wants its corporations to diversify their supply chains away from China. The government is offering to pay businesses to do just that. The preferred method is to bring business back to Japan, but the government will even pay some firms to move their Chinese operations into other countries. South China Morning Post reports: Japan has earmarked US$2.2 billion of its record economic stimulus package to help its manufacturers shift production out of China, as the coronavirus disrupts supply chains between the major trading partners. The extra budget, compiled to try to … [Read more...]