Sentiment around ‘shortages’ highest in a year, finds GlobalData

assets/files/images/01_09_22/globaldata1.jpg

Companies worldwide are much more positive about supply chain and labour shortages in Q2 2022 than they were a year ago, according to research by GlobalData.

The data and analytics company’s Filing Analytics database reveals that sentiment around ‘Shortages’ rose by over 7% in Q2 2022, from low (a sentiment score of 0.6) in Q2 2021 to high (0.67) in Q2 2022, based on the analysis of mentions of ‘shortages’ within the company filing documents of over 900 companies worldwide.

The research was undertaken as part of GlobalData’s latest report, ‘Company Filings Analytics Trends & Signals Q2 2022’, which analysed the different types of shortages being discussed. Among the most frequent were ‘labour’ shortages and ‘supply chain’ disruption, most particularly the disruption caused by semiconductor shortages. However, despite shortage issues continuing, firms have been adopting strategies to overcome the shortfalls. 

Ekta Chourasia, Business Fundamentals Analyst at GlobalData, comments: “Companies have been optimistic that they can mitigate the impacts of labour and supply chain shortages. In terms of labour, companies were generally optimistic around managing their workforce, despite many discussions noting that the labour environment is tough. Consumer companies Micro V.F. 

“Corporation and Mdf Commerce were positive around the labour crunch, expecting the market to open up shortly, while Cambell Soup spoke positively about its labour retention. The soup manufacturer was also positive when it came to its supply chain digitalisation and supply chain network expansion strategies. Meanwhile, electric vehicle (EV) manufacturer Nio Inc was confident that it could ramp up its production capacity, despite the semiconductor shortage.”

Reflecting on the semiconductor shortage, Josep Bori, Thematic Analyst at GlobalData, comments: " The global shortage situation has modestly improved from the worst months of the COVID-19 pandemic, but we are not out of the woods yet. On the supply side, the easing of COVID-19 lockdown measures that had previously impacted manufacturing facilities has helped. On the demand side, the ongoing economic slowdown is reducing semiconductor demand, as reflected in the recent results of companies such as Intel, Nvidia and Micron. 

“Both these trends effectively alleviate chip shortages. However, what lays ahead is an uncertain balancing act between the ongoing post-COVID normalisation and the semis manufacturing capacity investments driven by the $52 billion US Chips and Science Act and the €43 billion EU Chips Act on one side, and the deteriorating global economy on the other.”

While there was much positivity in company filings, some were negative. For example, Lamb Weston Holdings stated that it incurred operational inefficiencies and higher costs due to ingredient and labour shortages. Technology company VTech Holdings Limited also discussed the impact of the semiconductor shortage on production and sales, noting that it had held up the shipment of new products like the Kidibuzz 3 and KidiZoom Smartwatch DX3.

Analysis by sector revealed that the technology, medical and consumer sectors saw the highest number of ‘shortages’ mentions in their company filings. 

Add a Comment

No messages on this article yet

Editorial: +44 (0)1892 536363
Publisher: +44 (0)208 440 0372
Subscribe FREE to the weekly E-newsletter