In the QAD Precision News Round-Up: 18 June 2021, US and EU
suspend aircraft tariffs; Euro zone production improves; FedEx
expands autonomous delivery tests; UK asks EU to delay meat ban; UPS
releases green goals; plus the benefits of DTC selling for
manufacturers and more.
US AND EU SUSPEND AIRCRAFT TARIFFS
On Tuesday, the United States and the European Union announced that
they would be ending a 17-year-long aircraft tariff dispute. The
tariffs primarily affected Boeing and Airbus, who control the majority
stake of the commercial aircraft market. The US and the EU agreed to
suspend the tariffs for five years in order to better compete with
China. Furthermore, both sides agreed to not specifically support
their own country’s producers with incentives such as tax breaks that
could potentially harm producers in the other countries. The deal came
about during the US-EU summit in Brussels. This was the first US-EU
summit since 2014. For more details, please click here.
EURO ZONE PRODUCTION IMPROVES IN APRIL
In April, industrial production in the Euro zone was better than
expected. On Monday, data showed that this growth is due to a more
than doubling in the output of durable consumer goods from the year
previous as pandemic restrictions eased. According to Eurostat, the
EU’s statistics office, industrial output grew 0.8 percent
month-on-month for a 39.3 percent year-on-year increase. In addition,
from March to April, output in the durable consumer goods sector
increased 3.4 percent following 1.2 percent monthly declines in
February and March. For more details, please see Reuters.
UK ASKS EU TO DELAY MEAT BAN
On Thursday, the UK asked the EU to delay a post-Brexit trade check
on meat, set to take effect at the end of June. The rule, dubbed the
‘sausage ban’, applies to chilled meats from England, Scotland and
Wales going to Northern Ireland. The EU responded saying that it would
“assess” the request. If the EU approves the delay, the remedy will
begin on September 30. The move comes after much dispute regarding the
implementation of the Northern Ireland Protocol agreed in the Brexit
deal signed last December. The UK’s chief Brexit negotiator, David
Frost, has stated that not much progress has been made. For more
details, please click here.
UPS AIMS FOR MORE SUSTAINABLE FUTURE
On Wednesday, UPS announced three sustainability initiatives to
achieve by 2035. The first goal is a 50 percent reduction in CO2
emissions per package delivered for global small package operations.
The second goal is to have all UPS facilities powered by renewable
energy. Finally, sustainable aviation fuel will account for 30 percent
of fuel used for air fleets. UPS is using the 2035 deadline as a
half-way point in meeting its 2050 goal of net-zero emissions. In the
near future, UPS aims by 2025 to have 25 percent renewable energy in
facilities and 40 percent of its ground operations using alternative
fuels. For more details, please click here.
FEDEX EXPANDS AUTONOMOUS PARCEL DELIVERY TESTS
FedEx has announced plans to expand its use of autonomous vehicles
for last-mile package delivery. On Tuesday, the company said it is
conducting a multi-year test of equipment from Robotics startup Nuro.
In April, the two companies partnered to trial autonomous, multi-stop,
and appointment-based delivery operations in Houston. The tests
include using Nuro’s “R2” model, an autonomous vehicle designed to
drive on local roads. FedEx said it is expanding its tests of the
delivery bots in response to accelerated e-commerce demand. According
to FedEx, it aims to use automation to improve safety, efficiency, and
productivity for its employees. For more details, please click here.
H&M SALES IMPROVE AS LOCKDOWNS EASE
From March to May, Swedish retail giant H&M sales surged 62
percent year-on-year compared to the same period last year as
economies reopened following COVID-19 lockdowns. Measured in local
currencies, sales improved 75 percent to 46.5 billion crowns ($5.59
billion). However, revenue in Q2 was 19 percent below levels seen in
2019. Stores across Germany and France remained shut, and footfall was
slow in many stores that were open. Furthermore, in the first half of
June, local-currency sales improved 35 percent year-on-year and were
up 2 percent compared to the same period in 2019. The retail company
said online sales continued to develop as stores reopened. For more
information, please see Reuters.
QAD Precision News
THE BENEFITS OF DTC SELLING FOR MANUFACTURERS
The juggernaut that is e-commerce has reshaped almost every industry,
shrinking the distance between manufacturers and consumers and
allowing brands to build loyalty with customers across a number of channels.
The digital revolution has meant manufacturers of consumer brands are
no longer competing just with their traditional rivals. Digital-only
start-ups — based anywhere in the world — can target, and win,
previously loyal customers.
Companies considering moving from wholesale and physical retail to
selling their products direct-to-consumer (DTC) need new capabilities.
In this QAD Precision Report we look at the benefits and challenges of
DTC sales for manufacturers. Read the full report here.