A profound realization was made while performing a routine MDR gap analysis of Medical Device Academy’s technical documentation procedure. In this article I wanted to discuss the functional effect that a gap analysis can have on your entire quality system. Everything mentioned below is because I performed a MDR gap analysis against a single procedure […]
Teams from the Russian region have been barred from entering the tournament for the foreseeable future. BLAST Premier have decided to stop rolling out invites to the teams based in Russia amid the building tensions due to the ongoing Ukraine-Russian conflict, the tournament organizer announced today in their Twitter handle. This decision has been plotted […]
CS:GO esports series BLAST Premier has announced that no Russian-based teams will be invited to play in its events for the foreseeable future. Furthermore, the WePlay CIS Masters Spring 2022, a regional qualifier for BLAST Premier originally set to run from March 25th – 27th, has also been cancelled. RELATED: WePlay Holding ends ties with […]
10GBASE-T or IEEE 802.3an-2006 is a standard to provide 10Gbit/s connections over unshielded or shielded twisted-pair copper cables for distances up to 330ft. There...
The number of homes that went pending in January, a leading indicator of future sales, fell 9.5 percent year over year, according to data released Friday by the National Association of Realtors.
The pandemic exerted an enormous influence on real estate dynamics over the past two years, but the lasting effects aren't likely to match much of what has been reported, new data shows.
Over the last decade, Tesla and other automotive manufacturers
have successfully harnessed the opportunity to convert
overperformance of existing CO2 emissions and fuel
consumption regulatory standards to valuable revenue streams.
Future opportunities to monetize overperformance to vehicle
regulatory standards hinge both on emissions performance of the
future vehicle fleet as well as the stringency of future standards.
In late December 2021, the US Environmental Protection Agency (EPA)
finalized tightening of the US greenhouse gas (GHG) standards for
light-duty vehicles, representing a cumulative 28% increase in
stringency over the 2023-26 model year period. These new standards
in the United States, along with the July 2021 EU proposal for a
55% decrease in allowable passenger car CO2 emissions by
2030, have reshaped the outlook for regulatory credit trading over
the next 5-10 years in these two markets. Meanwhile, mainland China
is midway through its fifth phase of reducing allowable fuel
consumption and the fifth year of mandatory growth in sales of
so-called New Energy Vehicles (NEVs). The dynamic regulatory
environments in these regions prompt a current look at where the
credit market opportunities may be found.
This report examines the forecast of future standards and
manufacturer compliance performance to identify where ongoing
opportunities for revenue from regulatory credit trading will
continue. The opportunities for existing manufacturers and
EV-focused new entrants to generate revenue through credit trading
or pooling vary by market because of their distinct regulatory
standards.
Key implications
Mainland China emerges as the market with the most vibrant
opportunity for regulatory credit trading in the next decade owing
to the structure of its regulatory programs. The regulatory design
and stringency create a relative balance between credit supply and
demand, with a sustainable trading market in the foreseeable
future. While the United States has been at the forefront of
automotive regulatory credit trading, this market may have matured
and is not expected to grow significantly.
In the United States, new GHG standards extend
opportunities for GHG credit trading through at least model year
2026. New entrants may find some potential, although it
will be limited by strong competition from some legacy
manufacturers able to offer credits at a larger scale. Credit
trading opportunities within the Corporate Average Fuel Economy
(CAFE) program hinge upon the outcome of the Biden Administration's
upcoming revised CAFE standards for model years 2024-26; assuming
the more stringent option (requiring 10% per year increases in fuel
efficiency) in the recent CAFE proposal, a viable credit trading
environment would exist through at least model year 2026.
In the European Union,pooling
opportunities will be strongest in the next few years, with
diminishing opportunity after 2025. Pooling agreements
between manufacturers can allow new EV-focused market entrants to
monetize their strong compliance position. However, with most
manufacturers planning a significant shift toward electrified
products, most of the pooling market is expected to be captured by
legacy manufacturers. The market for pooling is destined to
gradually disappear if the European Commission proposal for zero
tailpipe emissions by 2035 is enacted, putting an end to any
overcompliance that could be monetized.
In mainland China, a dual credit system encompassing
simultaneous required reductions of average fuel consumption and
mandatory increasing sales of NEVs creates an active market for
tradeable credits. Credits generated by exceeding the NEV
sales mandate can be used to satisfy either of the dual program
requirements, making these credits particularly valuable and
stimulating surplus NEV sales beyond the minimum requirements. The
government's transparency in publishing official credit transaction
and pricing data confirm a vibrant and buoyant credit market with
historically high transaction volumes and credit prices in recent
years.
Read our complimentary 30-page whitepaper which discusses the
selling of credits as a lucrative revenue stream for EV makers.
One Plan for your Supply Chains The previous blogpost discussed how uncertainty and disruptions in supply chains are likely to be experienced for the foreseeable future. Reacting to events by ‘putting out fires’ looks good as a ‘can do’ attitude to impress others, but is an ineffective and expensive way to operate. As an alternative, your business can build a ... Read More
I am traveling for the last time this year and when I am on the road I get to reflect a lot on what is actually going on within supply chains and what we can expect into the future. Here are some things I have reflected on and believe for 2022:
Disruption is not Going Away:
Short of a major economic turndown, the container issues, ship issues, port issues, driver and transportation issues all will continue through 2022 and into 2023. There is no evidence that until significant ship and container capacity comes on line (2023) there will be much improvement. As we have learned this last few weeks, the “appearance” of improvement has been somewhat of a mirage. Ships are slowing down and they are at anchor just further out at sea.
COVID Is Moving from a Pandemic to an Endemic:
The definition of an endemic is something that is around us and never going away. Covid will be around us, at a baseline level for the foreseeable future. The next time you hear someone say to you, “When this is over… “ , remind them we are going into our 3d year. This is the “way it is” and masks, vaccines and therapeutics will be needed likely for the remainder of my life. Supply chains cannot “wait until this is over “ to implement change and execute process improvements. We have to learn to work within it.
Shippers Will Continue To Take More Control of The Assets:
We all have seen the stories of big companies leasing ships but who would have thought a large furniture company would buy a large trucking company? This is a perfect example where shippers will be adjusting their supply chains to deal with the massive margin inflation in purchasing of supply chain services. It takes a while but supply chains will adjust. Product will be on-shored, assets will be insourced, and networks will be redesigned to adjust and mitigate the inflation.
This was started by Amazon when they bought Kiva Robots and they have progressively taken control of their own destiny. Amazon will surpass UPS and FEDEX as the largest package shipper (on their own assets) sometime next year. The massive margin inflation passed to shippers this year is not sustainable and it will end.
We Will See 3 Interest Rate Hikes in 2022:
This is breaking news as it was today the Fed had their press conference after the December FOMC meeting. You decide what this means for your business but suffice to say the “punch bowl” is going to be removed from this economy. I personally believe this will mean a number of “zombie” companies will struggle to survive. The easy money will be gone and companies which generate no profit will not continue to be valued at such high levels as they are today.
A Few Charts:
Those who know me know I track the FRED Inventory to Sales ratios as an indicator telling us what stage the restocking and the “normalization” of supply chain is in. The news is that we are still dramatically lower than we need to be and this means restocking will continue for the foreseeable future (See Disruption is Not Going Away above):
Below is a great visualization showing what is happening with COVID and is updated through today, December 15th:
Over the next few weeks I will get a bit more granular on my predictions however this provides a good high level overview of what 2023 looks like.
With this information it really makes sense to play The WHO: Don’t Get Fooled Again!