@Risk

Earlier this year, ten leading garment brands and retailers signed a “Call to Action” designed to ban denim sandblasting, a hazardous process that can cause illness and even death for workers.

“Jeans are one of the most popular items of clothing and a very profitable segment of the market is for ‘distressed’ jeans,” explained Patrick Itschert, General Secretary of the International Textile, Garment and Leather Workers’ Federation (ITGLWF). “The method of choice for giving jeans a faded look is sandblasting, but it is a process which is very damaging to workers’ health. Sandblasting releases dust which, when inhaled, causes scarring in the lungs. This can cause silicosis, an incurable and potentially fatal respiratory disease.”

Most countries banned sandblasting decades ago. However, it still occurs in numerous illegal workshops, putting thousands of workers at risk –and threatening the reputation and supply chain integrity of garment brands and retailers from throughout the globe.

Initially, the Call to Action to end sandblasting was signed and supported by Aurora Fashions, Bestseller, C&A, Carrefour, Esprit, Hennes & Mauritz AB (H&M), Inditex, Karen Millen, Levi Strauss & Co. and New Look.

Now, The Independent is reporting that the Italian fashion giant Versace has also agreed to throw its weight behind the effort. From the article: (more…)

A report last year by the Commerce Department’s Bureau of Industry and Security, Office of Technology Evaluation found that counterfeit electronics are present in troubling amounts in the Department of Defense supply chain.

Then, in March, the Senate Armed Services Committee launched an investigation into this growing problem.

Now, the National Intellectual Property Rights Coordination Center (IPR Center) has announced “Operation Chain Reaction,” a new comprehensive initiative to target the counterfeit and pirated goods entering the supply chains of the DOD and other US government agencies.

This is the first time that IPR Center participants have come together to collectively address the threat posed by fake parts in government supply chains. The list of IPR Center participants includes:

• US Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI)
• US Customs and Border Protection (CBP)
• Federal Bureau of Investigation
• Naval Criminal Investigative Service
• Defense Criminal Investigative Service (DCIS)
• US Army Criminal Investigative Command, Major Procurement Fraud Unit
• General Services Administration, Office of Inspector General
• Defense Logistics Agency, Office of Inspector General
• US Air Force, Office of Special Investigations

In a press release, ICE revealed a few examples of recent investigations involving counterfeit products entering the federal supply chain. Check out these cases, which illustrate the need for immediate attention to this critically important issue: (more…)

In a hearing held by the US House Subcommittee on Energy and Mineral Resources last week, a variety of mining industry stakeholders voiced their concerns about American dependence on foreign mineral imports and emphasized the need for a comprehensive US minerals policy that improves the regulatory approval processes for domestic resources development.

“Without increased domestic exploration, significant declines in US mineral production are unavoidable as present reserves are exhausted. We will continue to ship American jobs overseas and forfeit our economic competitiveness unless we take steps to develop our own mineral resources,” said Subcommittee on Energy and Mineral Resources Chairman Doug Lamborn (CO-05). “Developing our Nation’s mineral resources is not only an integral part of an all-of-the-above energy plan but it will create long-term family wage jobs, stimulate our economy and reduce our foreign dependence on mineral resources.”

The US Geological Survey’s (USGS) Mineral Commodity Summaries, released earlier this year, reports the US is completely (100 percent) dependent on foreign sources for rare earth elements (REE), 97 percent of which are provided by China.

However, in 2010, the USGS released a report revealing 13 million metric tons of REEs exist within known deposits in 14 US states. According to the House Subcommittee, the Obama administration is not doing enough to facilitate utilization of these domestic resources.
(more…)

Counterfeit products are a threat to everyone’s health and safety. Plus, they extract an enormous economic toll, as well. Analysts now estimate that counterfeiting costs US companies alone $250 billion and results in the annual loss of 750,000 American jobs.

What can your company do to combat this growing global concern?

For starters, I suggest you read through a free report recently published by the American National Standards Institute (ANSI).

This report, Best Practices in the Fight against Global Counterfeiting: An Action Guide to Strengthen Cooperation and Collaboration across Industry Sectors and among Global Supply Chains,  is the product of a 2010 ANSI workshop and conference on anti-counterfeiting, and it includes insights from industry representatives and professionals from trade organizations and associations, academia, consumer groups, law enforcement, and government agencies.

The report also outlines several recommendations to assess and address counterfeiting across industry sectors. These suggestions include: (more…)

It looks as though the tide is turning for the automotive industry.

A new study released last week by A.T. Kearney paints a rosy picture for the future, forecasting:

• 13.2 million new autos will be sold in the US this year and

• an upward trend toward pre-recession levels of about 16 million units by 2013.

According to the study, over the past four years, total new and used pent-up demand has accumulated to 32 million units, of which more than nine million will materialize in the new vehicle market over the next five to seven years. The remaining 23 million units will sell in the used-car market.
But, as A.T. Kearney is quick to point out, there are a handful of significant variables that could, potentially, change these projections. This list includes:

• overall economic growth

• credit availability (The recession created 15 million “new sub-prime consumers,” of which approximately 530,000 customers would be locked out of the new vehicle market without help from auto lenders.)

• consumer prices

• consumer confidence

• parts shortages in the aftermath of the earthquake and tsunami in Japan

What can OEMs and suppliers do to prepare for the anticipated upswing in sales –even as they accept the possibility of market volatility? A.T. Kearney suggests that OEMs and suppliers: (more…)