Plus: Industrial Laser Sales Rose in 2010, Jobless Claims Continue to Drop and Supplier Sustainability Efforts Rated.

Global Trade Growth to Slow in 2011
Following a 14.5 percent surge in exports last year, global trade growth is expected to moderate to 6.5 percent in 2011, signaling a slowdown in the pace of recovery from the worldwide economic downturn, according to the World Trade Organization (WTO) last week.

Last year’s 14.5 percent rise, the highest annual growth rate for trade since the WTO began keeping records in 1950, was helped along by a 3.6 percent gain in global output. Although global trade has returned to its peak 2008 level, growth is expected to slow in 2011, remaining slightly above the 6 percent average yearly increase between 1990 and 2008.

“The figures show how trade has helped the world escape recession in 2010,” WTO Director-General Pascal Lamy said. “However, the hangover from the financial crisis is still with us. High unemployment in developed economies and sharp belt-tightening in Europe will keep fueling protectionist pressures. WTO Members must continue to be vigilant and resist these pressures and to work toward opening markets rather than closing them. ‘Stability’ should be the name of the game for 2011.”

Developing economies are expected to lead trade growth this year, with a projected 9.5 percent increase, while developed economies are expected to boost trade by 4.5 percent on average. Worldwide gross domestic product is forecast to climb 3.1 percent at market exchange rates. U.S. exports grew 15.4 percent in 2010, following a 14 percent drop the previous year.

“Emerging markets led the world out of the recession triggered by the banking crisis in developed nations, with China replacing Japan as the world’s second-largest economy last year,” Bloomberg News reports. “While most countries have emerged from recessions, the WTO continues to press governments to take steps to stimulate commerce and bolster the global trading system.”

In a separate report last week, the International Monetary Fund also forecasts the global recovery to continue, with worldwide economic growth to total 4.5 percent in both 2011 and 2012. Financial conditions are likely to remain fragile, however, with commodity prices and inflationary pressures areas of particular concern.

Industrial Laser Sales Rose in 2010
U.S. shipments of industrial laser equipment and systems totaled $356.2 million in 2010, with sales jumping 44.9 percent over the prior year to total 1,210 units, according to the Association for Manufacturing Technology (AMT). In monetary terms, the increase marked a 37 percent increase over the sector’s dismal 2009 performance.

“The 37 percent pick-up in 2010 is a modest rebound in the face of the nearly 50 percent decline in sales during 2009,” Patrick McGibbon, VP of Strategic Information and Research at AMT, said in a statement. “Prospects look bright for the remainder of 2011 as new technologies are brought to market and fiber lasers continue to expand.”

Based on data compiled from 19 manufacturers and distributors, AMT reports that CO₂ lasers accounted for 88.5 percent of the shipments’ value, which is virtually unchanged since 2009. By total number of units sold, the trade group’s report shows that CO₂ lasers represented 70.2 percent of 2010 shipments.

After peaking in 2009, the number of lasers configured as full systems in 2010 accounted for the same share of shipments as in 2008. The value of orders configured as full systems was $309.2 million. Other configurations tallied included laser beams only (workstations) and laser source only.

Jobless Claims Drop
New initial jobless claims fell sharply in the latest week reported, indicating a strengthening recovery in the labor market. According to the U.S. Department of Labor, seasonally adjusted unemployment claims fell by 10,000 for the week ending April 2, bringing the total down to 392,000. The four-week moving average fell by 5,750 to reach 389,500.

Since February, weekly jobless claims have mostly remained below the 400,000 level that indicates healthy job growth, and the national unemployment rate inched down to 8.8 percent, a two-year low, in March. These positive signs from the job market may boost broader economic conditions, some of which have been sluggish due to slow job creation.

“Fewer firings along with further increases in headcount may help ensure that gains in consumer spending, which accounts for 70 percent of the economy, are sustained,” Bloomberg News explains. “Unemployment that has declined four straight months supports the view of Federal Reserve policymakers that the job market is showing signs of healing.”

The nationwide jobless rate has dropped a full percentage point since November, the fastest month-to-month decline since 1984, with 216,000 private sector jobs added in March. However, companies would need to significantly accelerate their hiring to push unemployment back below its pre-recession level of 5 percent.

P&G Supplier Sustainability Scorecard: Year One
Almost a year ago, Procter & Gamble (P&G) launched its Environmental Sustainability Supplier Scorecard, a major initiative designed to track and encourage improvement on key environmental sustainability measures in the company’s supply chain, including collaboration and ideas-sharing to deliver more sustainable products and services to consumers. The scorecard is similar to Walmart’s sustainability index in that it asks suppliers about their sustainable practices, including greenhouse gas reduction targets and renewable energy use, among other measures.

With about 310 companies responding, P&G last week announced findings from the first year of results.

The first year was focused on assessing whether P&G would receive clear data to measure future improvements and jump-start innovation related to sustainability. The company found that most suppliers could track the requested key sustainability measures and that the process of innovation sharing had begun. About 40 percent of the 300+ scorecards submitted offered at least one innovation idea in the area of sustainability, including a chemical supplier that has begun work with P&G on renewable energy, renewable materials development and ways to reduce emissions.

Starting this year, suppliers will be scored based on their year-by-year results, and P&G will publicly reward “exceptional performance” in the area of sustainability. When suppliers score poorly, P&G will develop improvement plans to get them on track.

P&G also rolled out an upgraded version for 2011, expanding the list of participating suppliers and agencies to around 600. The updated version of the scorecard includes a few changes based on partner input, including “the ability to compare year-on-year improvement using either absolute or intensity data, or both.”