The Supply Chain Buzz for the Week of October 2nd: Labor Issues and Economic Updates
Oct 6, 2023
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Topics discussed include ongoing labor strikes in the automotive sector, labor issues in the healthcare industry, the inevitability of a recession, a decrease in robot orders, and the use of AI and automation in supply chain operations.
Labor strikes in the automotive and healthcare industries are impacting the global supply chain and exacerbating workforce shortages.
The US economy expanded at a 2.1% pace in Q2 2023, with concerns about a potential recession persisting.
Deep dives
FedEx collaborates with dexterity AI to automate trailer loading
FedEx is partnering with robotics company dexterity AI to automate the loading of FedEx ground trailers. The collaboration aims to improve trailer loading efficiency through the use of powered robots. This initiative addresses the ongoing workforce challenges faced by companies and the need to automate certain tasks. Testing is currently ongoing, but no specific deployment timeline has been provided. This collaboration showcases how automation and AI are being utilized to optimize and streamline supply chain operations.
US economy grows at 2.1% pace in Q2 2023
According to MarketWatch, the US economy expanded at a 2.1% pace in Q2 2023. Consumer spending came in weaker than expected, while business investment in plants and equipment was stronger than anticipated. Inventory levels also saw an increase. However, concerns about a potential recession persist. Experts predict that a recession is inevitable, but the consumer sector has shown resilience. The economic landscape remains complex, with conflicting factors and political motivations playing a role.
Labor strikes impact automotive and healthcare industries
Labor strikes continue to impact industries such as automotive and healthcare. Mac Truck, a heavy-duty truck maker, reached a tentative labor deal with its workforce, while strikes by United Auto Workers (UAW) members were expanded at Ford, Stellantis, and General Motors. In the healthcare sector, 75,000 workers at Kaiser Permanente are set to strike if a deal with labor unions is not reached. The ongoing labor issues in these industries pose challenges to the global supply chain and exacerbate workforce shortages. Finding effective solutions to support workers and address these challenges is necessary.
The importance of adapting to technological advancements
Adapting to technological advancements is crucial for individuals and businesses. AI and automation are transforming industries and changing the nature of work. Embracing new opportunities and skill sets is essential for survival and growth. While AI can replace certain tasks, humans possess unique qualities such as creativity, adaptability, and resilience that technology cannot replicate. The ability to adapt, innovate, and focus on higher-value work will enable individuals and organizations to thrive in the digital economy.
The Supply Chain Buzz is Supply Chain Now’s regular Monday livestream, held at 12n ET each week. This show focuses on some of the leading stories from global supply chain and global business, always with special guests – the most important of which is the live audience!
In this episode of the Buzz, created in collaboration with a live Supply Chain Now audience, featured hosts Scott Luton and Greg White dig into top stories in business and share about:
The ongoing labor strike in the automotive sector, and how it is affecting the workers and the automotive industry as a whole
Widespread labor issues in the healthcare industry as Kaiser Permanente struggles to reach a deal with labor unions
The inevitability of a recession on the horizon, with recent low economic growth and weak consumer spending
A decrease in robot orders in Q2 2023 after record-breaking purchases in 2021 and 2022
WEBINAR- The High Cost of Inaction: Embracing the New Status Quo in Supply Chain: https://bit.ly/3t9td2E
WEBINAR- A Match Made in Heaven - Your ERP and Inventory Planning Software: https://bit.ly/3sP3TyL
WEBINAR- From Numbers to Strategy: How Finance Drive Data-Driven Supply Chains: https://bit.ly/45bRYZF
This episode is hosted by Scott Luton and Greg White. For additional information, please visit our dedicated show page at: https://supplychainnow.com/supply-chain-buzz-labor-issues-economic-update-1179
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