MFGWatch Survey of European Manufacturers - Q2 2011

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Beginning in the first quarter of 2011, expanded its MFGWatch Quarterly Survey of North American Manufacturers to include manufacturers from Europe, the Middle East & Africa (EMEA). The survey was conducted from the Paris office, and the second quarterly survey for that region was just completed.

Here are the results from the most recent survey of the EMEA manufacturing region:

EMEA supply-side manufacturers saw a significant contraction of business activity in Q2 ’11, with 44% saying business conditions grew (down from 57% in Q1 ’11)

EMEA Supplier Business Conditions Q2 2011

For the second quarter in a row, a remarkable 52% of buy-side manufacturers in Europe experienced significant supply chain disruptions in Q2 ‘11

EMEA Supply Chain Disruptions

Similarly, nearly half (49%) of European supply-side manufacturers reported  they’ve received queries or actual work from companies under duress from supply chain disruptions, up 19% from Q1 ‘11

Suppliers RFQs From Supply Chain Disruptions

Employment among European manufacturers was mixed in Q2 ’11. Nearly 43% of supply-side manufacturers added staff in Q2 ’11, up 7% from the previous quarter

Supply-side Manufacturing Hiring Q2 2011

However, fewer sourcing manufacturers added staff during the same timeframe (31.4%, down from 36% in Q1 ’11)

Buy-side Manufacturing Hiring Q2 2011

For the second straight quarter, buyers see Logistics & Shipping Costs (20.8%), Product Quality Compliance (16.5%) and Availability of Competent Suppliers (12%) as the 3 greatest risks to their supply chain strategies.

Supply Chain Risks Q2 2011

Fewer buy-side manufacturers returned production closer to Europe from a low cost country, with only 12.6% reporting such activity (down from 14% in Q1)However, 34.2% say they are examining moving or establishing production closer to or within markets of consumption in Q3 '11, up over 3% from the previous quarter. Approximately 70% of both European buy-side & supply-side manufacturers report they intend to invest in technology, hiring of new staff, or a combination of both for the remainder of 2011Buyer Investment Projections 2011.


Supplier Investment 2011

Supplier Investment Projections 2011

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