Manufacturing Has Recovered: Vendor Performance a Growing Problem

The latest news is the more and more purchasing managers are reporting slower delivery times from their vendors.  The spike is quite pronounced, matching many of the historic peaks.

The euro-area economy probably edged back to growth last quarter for the first time since 2011, ending the longest recession since the single currency union started 14 years ago.

One Eyed Guide submits: That was one ugly Friday for economic reports. Among the slew of bad reports, the Reuters/Michigan Survey of Consumers declined so much that the survey director, Richard Curtin, stated: "Whenever the Expectations Index has been this low in the past, the economy has been in recession."Has the recession started?

Note: The traffic this morning overwhelmed the graph server. I'm working with the provider, and it appears everything is OK now. Here is the Employment graph gallery.The May ISM Non-manufacturing index was at 54.6%, up from 52.8% in April. The employment index increased in May at 54.0%, up from 51.9% in April. Note: Above 50 indicates expansion, below 50 contraction.

Vendor performance was an emerging issue in 2010 and will become a problem for more businesses in 2011. If you got through last year without any difficulties, don’t be sure that you’ll be so lucky this year. If you did work through some issues last year, you may find that they worsen soon or that your solutions don’t “stick.” All companies that need other firms for critical supplies or services should analyze their situations.