RELEASE: Demand for materials and components continues to slump, especially in North America (1)

(Information sent by the signatory company).

RELEASE: Demand for materials and components continues to slump, especially in North America (1)

(Information sent by the signatory company)

Demand for materials and components remains sluggish, especially in North America, as recession risk lingers, according to GEP's Global Supply Chain Volatility Index

CLARK, N.J., Feb. 15, 2023 /PRNewswire/ -- The GEP Global Supply Chain Volatility Index, a leading indicator that tracks demand conditions, shortages, transportation costs, inventories and prices. delays, fell to 0.97 in January, from 1.61 in December, showing that global supply chains continue to improve and are the least stressed since September. 2020.

Data for January shows item shortages at their lowest level in more than two years; transport costs have generally normalized; and companies are making progress in reducing their inventory reserves and safety stocks, which have built up significantly in recent years.

However, the GEP Index shows that January is the seventh consecutive month of declining global demand for raw materials, basic products and other components necessary to provide finished goods and services. The lowest demand is in North America, indicating a persistent recession risk.

Commenting on the latest results, Mike Jette, vice president of consulting at GEP, said: "While supplier capacity remains somewhat constrained, we are much closer to normal operating conditions across supply chains around the world. Looking ahead is continued weakness in demand, but it provides corporate buying significant leverage to secure better prices and favorable terms."

The key findings of the January report are:

Note: Full historical data going back to January 2005 is available; contact

About the GEP Global Supply Chain Volatility Index

The GEP Global Supply Chain Volatility Index is produced by S

The headline figure is the GEP Global Supply Chain Volatility Index. This is a weighted sum of six sub-indices derived from data from PMI, PMI Comments Trackers, and PMI Commodity Price.

The GEP Global Supply Chain Volatility Index is calculated using a weighted sum of the z-scores of the six indices. The weights are determined by analyzing the impact that each component has on the delivery times of the suppliers through regression analysis.

The six variables used are 1) JP Morgan Global Purchase Quantity Index, 2) All Item Shortage Indicator, 3) Transportation Price Pressure Indicator, and feedback tracker data from the Manufacturing PMI for 4) storage due to supply or pricing issues, and increased delays due to 5) staff shortages and 6) item shortages.

A value greater than 0 indicates that supply chain capacity is stretching and supply chain volatility is increasing. The higher than 0, the greater the degree to which capacity is stretched.

A value below 0 indicates supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which the capacity is being underutilized.

A regional supply chain volatility index is also published for Europe, Asia, North America and the UK. Regional indices measure the performance of supply chains connected to those parts of the world.

For more information on PMI surveys, PMI Feedback Trackers and PMI Commodity Price and Supply Indicators, or GEP Supply Chain Volatility Index methodologies, contact economics@spglobal. com.

About GEP

GEP® offers transformative supply chain solutions that help global businesses become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, increase profitability, and increase shareholder value. Fresh thinking, innovative products, unmatched expertise in the field, smart and passionate people – this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver supply chain solutions of unprecedented scale, power and efficiency. Our clients are the best companies in the world, including more than 550 Fortune 500 and Global 2000 industry leaders, who trust GEP to achieve ambitious strategic, financial and operational goals. As a leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently earn awards and recognition from industry analysts, research firms, and the media, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked as a top supply chain strategy and consulting firm, and a leading provider of managed services by ALM, Everest Group, NelsonHall, IDC, ISG, and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers in Europe, Asia, Africa and the Americas. For more information, visit

About S.


We are highly sought after by many of the world's leading organizations to provide credit ratings, benchmarking, analysis and workflow solutions in the global capital, commodity and automotive markets. With each of our offerings, we help the world's leading organizations plan for tomorrow, today.

About PMI

Purchasing Managers' Index™ (PMI™) surveys are now available for more than 40 countries and also for key regions, including the Eurozone. They are the world's most closely watched business surveys, favored by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends.


The intellectual property rights of the data provided in this document are owned by S

This Content was posted by S

Photo - - - 518346/...

View original content: