Panjiva Analysis Confirms Alarming Trend In Global Trade Economy
Panjiva, an objective information source on global manufacturers, recently released its updated Manufacturer Watch List. The Watch List, which is published as part of the company's premier Panjiva Alerts service, helps U.S. buyers across a wide range of industries manage the risk of doing business globally by distinguishing between risky manufacturers and healthy suppliers of goods and materials. To be added to the Watch List, manufacturers must suffer a 50% or greater decline in volume shipped to American customers in the most recent three month period, versus the same period a year ago.
By analyzing U.S. Customs data on shipments from significant overseas manufacturers to significant U.S. buyers – those who send or receive 10 or more shipments a year – Panjiva reached the following startling conclusions:
- Nearly half of significant buyers (47%) have done business with a Watch List supplier within the last six months
- Over a third of significant buyers (38%) have done business with a Watch List supplier in the past three months
- Over a quarter of all significant manufacturers (28%) are on the Watch List, as a result of suffering a 50% or greater decline in volume shipped to American customers in the most recent three month period, versus the same period a year ago.
According to Panjiva CEO Josh Green, "These numbers reveal that a startlingly high number of U.S. companies are doing business with troubled manufacturers. Unfortunately, many of these buyers may not even be aware of the risk they're facing. As the economy worsens, it's essential that U.S. companies move quickly to identify which of their suppliers are at risk, and which are healthy, so as to avoid supply chain disruptions."
To help organizations manage risk, Panjiva offers a comprehensive suite of services for all industries. Now, companies can tap Panjiva Alerts to flag suppliers at risk of going under, and companies can tap Panjiva Search to identify new healthy suppliers of goods and materials. For more information, visit http://panjiva.com.
About Panjiva's Methodology
Panjiva's patent-pending technologies were developed under the leadership of Panjiva Co-Founder and CTO James Psota, a computer scientist from MIT. The technologies enable Panjiva to process huge amounts of data, cleanly and quickly.
To assess aggregate risk in the global supply chain, Panjiva analyzes waterborne shipments to U.S. customers, tracking manufacturers that are serving the American market. For each manufacturer, Panjiva tracks changes in volume over time. The results of Panjiva's analysis will be released on a monthly basis.
About Panjiva
Panjiva is an online resource for sourcing executives to gain credible and valuable knowledge about suppliers and manufacturers around the world. By providing the most comprehensive data in an easy to use format, Panjiva informs the decisions that facilitate doing business globally. Supply chain and global production executives responsible for finding the right factories, negotiating costs and avoiding costly supply chain disruptions have been "flying blind." Panjiva is the first and only online information source designed to provide complete transparency into overseas suppliers. Leveraging a variety of public and proprietary data sources, Panjiva is bringing new levels of visibility to the management of global supply chains. Panjiva was founded by CEO Josh Green and CTO James Psota. Earlier this year, Panjiva received an equity investment from Battery Ventures and a contingent of angel investors. For more information, visit: http://panjiva.com
SOURCE: Panjiva