Today's Top Supply Chain and Logistics News From WSJ
19 Septembre 2017 - 1:07PM
Dow Jones News
By Paul Page
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Consolidation in the aerospace sector is heading into space.
Northrop Grumman Corp.'s planned $7.8 billion acquisition of
Orbital ATK Inc. would give the company a foothold in the military
space race, the WSJ's Doug Cameron reports, helping Northrop
produce and launch large and small satellites while developing new
defense and weapons systems. The deal could also rekindle
consolidation among defense contractors that has been on hold since
a series of big buys narrowed the field of suppliers in the 1990s.
But the broader commercial aerospace market has been in upheaval
lately, with United Technologies Inc.'s move this month to buy
Rockwell Collins Inc. for $23 billion jolting the sector. U.S.
defense companies are growing again after years of government
budget pressures, but big opportunities are scarce. Still, the
Pentagon is looking to make U.S. space assets less vulnerable by
launching larger numbers of smaller satellites, and that would
likely speed up production, putting a bigger premium on the ability
to develop and deliver the equipment.
Ford Motor Co. is getting big help in its bid to expand in
India. The car maker is linking with Indian automotive company
Mahindra & Mahindra Ltd. in a three-year partnership, the WSJ's
Christina Rogers writes, that could bring collaboration in areas
such as electric vehicles and retail sales, giving Ford the
supply-chain heft it needs to expand in the market. Ford is hoping
to trim costs in India, a market that has become a drain on
resources for many car makers struggling to turn a profit there.
While demand is growing, the market remains overcrowded with
competitors trying to sell low-price cars with slim margins.
Mahindra is known for taking a frugal approach to engineering while
developing vehicles that can appeal to budget-minded buyers. Such
partnerships are increasingly popular in India, where regulatory
demands and poor local infrastructure have made it tough for
Western operators to build the business models that have worked in
other countries.
Honda Motor Co. is betting big on its U.S. production of sedans
even as the popularity of bread-and-butter family cars fades. The
Japanese auto maker is putting $267 million into upgrading its
Marysville, Ohio, factory along with the technology and styling in
its signature Accord sedan, the WSJ's Adrienne Roberts writes,
while shifting consumer tastes have many supply chains for trucks
and SUVs at other car makers supplanting sedan production. Total
midsize sedan sales in the U.S. have slipped more than 15% so far
this year, leading some automakers to shift direction on
manufacturing and focus on the bigger vehicles. Most of Honda's new
investment will go toward new technologies to build the Accord
while $47 million will go toward manufacturing engines for the cars
in Ohio. That will keep parts moving to supply the plants for now,
but drivers will have to buy into the new design to keep production
moving over the long haul.
ECONOMY AND TRADE
The Trump administration is toughening its trade stance with
China even as it tries to reset the North American trade framework.
U.S. trade representative Robert Lighthizer told a forum in
Washington that China represents an "unprecedented" threat to the
world trading system, the WSJ's William Mauldin reports, saying its
state-driven efforts "distort markets" and pose a greater challenge
than in the past. The administration is focused most on technology
transfers and issues such as China's enormous industrial
production, which critics say is growing far more than demand
because of Beijing's efforts to stimulate the country's economy.
Mr. Lighthizer criticized China's push to "create national
champions," a drive familiar in a transportation world that has
seen Chinese operators expand rapidly in shipping and ports
management. The White House hasn't laid out a specific plan on
trade with China but is pursuing various investigations under U.S.
law that could end in tariffs on Chinese goods.
QUOTABLE
IN OTHER NEWS
Crude oil prices are pushing toward a five-month high. (WSJ)
Wisconsin Gov. Scott Walker signed a bill that would give
Taiwan's Foxconn Technology Group $3 billion in economic incentives
to open a mega-plant in the state. (WSJ)
Major maritime groups say the shipping industry should put off
aims to reduce carbon emissions until the second half of the
century. (Lloyd's List)
California's legislature approved a union-backed measure barring
the state from buying automated zero-emissions equipment for ports.
(Sacramento Bee)
The International Maritime Organization issued a new warning
about the dangers of shipping bauxite, a major source of aluminum.
(Splash 24/7)
Cosco Shipping Holdings is diverting cargo away from Canada's
Port of Prince Rupert because of congestion. (Journal of
Commerce)
Maersk Line is using agreements with local transport providers
in India to offer more end-to-end distribution service. (Economic
Times)
ABB Ltd. plans to double production of industrial robots to meet
China's growing factory automation demands. (Bloomberg)
Japan lifted an 11-year ban on the import of U.S. chipping
potatoes. (AgDaily)
Australia's dairy farmers are breaking from traditional pacts
with milk processors in an upheaval in the industry's supply chain.
(Sydney Morning Herald)
FedEx Corp. is asking for an extension until next June of its
authority to launch freighter service between Miami and Cuba. (Air
Cargo News)
The driver turnover rate at large truckload fleets jumped 16
percentage points in the second quarter. (Commercial Carrier
Journal)
Financially-troubled truckload carrier Celadon Group Inc. sold
its flatbed trucking division to a unit of PS Logistics LLC.
(American Shipper)
Amazon.com Inc. will move ahead with plans to build a
1-million-square-foot distribution center in southwest Ohio.
(Columbus Dispatch)
Amazon is adding its third fulfillment center in Oregon.
(Seattle Times)
FedEx Freight unit will build a trucking terminal on 49 acres
south of Milwaukee. (BizTimes)
Fulfillment provider Menasha Corp. acquired retail-industry
supplier ARI Packaging. (Modern Materials Handling)
Massachusetts brewers are pushing a measure allowing them to
drop deals with distributors under most circumstances. (Fitchburg
Sentinel & Enterprise)
Hurricane Irma has disrupted the distribution of flowers from
South America that normally move through Miami. (Cedar Rapids
Gazette)
ABOUT US
Paul Page is deputy editor of WSJ Logistics Report. Follow him
at @PaulPage, and follow the entire WSJ Logistics Report team:
@brianjbaskin , @jensmithWSJ and @EEPhillips_WSJ. Follow the WSJ
Logistics Report on Twitter at @WSJLogistics.
Write to Paul Page at paul.page@wsj.com
(END) Dow Jones Newswires
September 19, 2017 06:52 ET (10:52 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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