Monthly Supply Chain Pulse - 18

📰 Supply Chain Pulse | Monthly Edition – May 5, 2025

Your Go-To Source for Supply Chain Insights, Trends, and Actionable Advice

Supply Chain Theme of 2025: Success will be measured by resilience and cost efficiency.

🆕 What’s New at Ena Source

Our New Website is Live: We’re excited to announce the launch of our brand-new website! This isn’t just a redesign, it’s a full refresh of how we showcase what Ena Source does best. Whether you’re a manufacturer looking for sourcing support, or you’re curious about our consulting services, the new site makes it easier to see how we drive results. It’s sharper, faster, and built to grow with us, and we’d love for you to check it out! 👉 www.enasource.com

New Multitasking CNC Machine = Faster, Smarter, More Flexible Production: One of our key U.S. manufacturing partners just installed a state of the art Nakamura-Tome NTRX-300 multitasking CNC machine, and that’s big news for our customers. This high-precision, all-in-one machine reduces setup time, increases production speed, and makes it possible to produce parts Just-In-Time. That means: shorter lead times, more reliable deliveries, less inventory sitting on your shelves, better cash flow control. If you’re purchasing custom metal parts, especially complex mid-volume components, this new capability could make a meaningful difference to your bottom line. We’d love to show you how!

We’re Leaning Into Consulting: Especially now, we all know supply chain performance is critical, but most small and mid-sized manufacturers don’t have the in-house resources to manage it like the big guys do. That’s where Ena Source comes in. We now offer hands-on, affordable supply chain consulting for manufacturers looking to:

• Improve cash flow

• Reduce purchasing costs

• Mitigate supplier risk

• Build a more resilient sourcing strategy

We don’t just hand you a report and walk away. We guide you through every step. From auditing your current suppliers and pricing, to finding better sourcing options, to executing a smoother, more cost-effective supply chain that actually works for your business. We’ve helped manufacturers streamline purchasing, replace unreliable suppliers, and unlock double-digit savings, all without the red tape or big-budget consultant fluff.

If you’ve ever thought, “We know our supply chain could be better, we just don’t know how,” this is your answer.

📊 Key Metrics

Staying competitive means keeping an eye on the data that matters most. Here are five supply chain metrics that we monitor and will provide updates on within each newsletter.

🛳️ Drewry World Container Index (WCI)

The 40ft container shipping rate from Shanghai to New York dropped 3.36% this month, reflecting a modest decline in global container shipping rates.

Why it matters: This signals that global shipping demand is holding steady but still soft, especially out of Asia. While not a dramatic shift, lower container costs can slightly reduce landed costs. However, geopolitical factors (like tariffs) could quickly reverse this trend.

What to consider: If you’re importing from overseas, use this period to review landed cost breakdowns. We’re helping clients identify parts where domestic or nearshore alternatives now make economic sense when you factor in risk, freight variability, and total cost, not just per-unit price.

🚚 DAT Truckload Freight Rate Index

The national average Van Spot Rate drops to $1.93 per mile (3.98% drop).

Why it matters: This decline signals softening demand in domestic freight, a likely sign that inventory levels are high or order volumes are slowing. For manufacturers, this is both a warning and an opportunity: lower freight rates can reduce overall landed cost, but they may also reflect a cooling in customer demand across sectors.

What to consider: If you’re not benchmarking your freight, let’s review. Some clients are cutting LTL costs by 5-10% with the right carriers.

🛢 Commodity Research Bureau (CRB) Index

The CRB index measures a basket of 19 commodities including energy, agriculture, and metals. It’s widely considered a leading indicator of inflation, economic health, and overall cost trends for goods across the market. An increase tends to signify an increase in economic activity while a decrease tends to signify a slowdown in economic activity.

The index decreased 6.59% this month.

Why it matters: A decline this sharp suggests a slowdown in global industrial activity or easing inflationary pressure. For manufacturers, it could mean lower input costs on materials, but only if your suppliers are passing the savings along.

What to consider: Now is the time to review open quotes and raw material surcharges. If your pricing hasn’t moved, but the materials have, you may be overpaying. We’re helping clients push back on outdated pricing and negotiate new supplier terms based on these commodity trends.

🇺🇸 🏭 Philadelphia Fed Manufacturing Index

To create this index, the Federal Reserve Bank of Philadelphia surveys around 250 manufacturers, asking about factors like employment, working hours, new and unfilled orders, shipments, inventory levels, delivery times, prices, costs, and business forecasts for the next six months.An index level above zero signifies improving conditions, while a level below zero indicates worsening conditions. Read more here.

Down 311.2% month-over-month, signaling a steep deterioration in regional manufacturing conditions.

Why it matters: This sharp drop points to rapidly declining sentiment in the Northeast manufacturing sector. Incoming orders, shipments, and employment are all likely tightening. When this index turns sharply negative, it’s a sign that slowdowns are already underway, not just forecasted.

What to consider: This is your early warning to rethink demand planning, reduce inventory exposure, and revisit supplier commitments. We’re advising clients to use this period to renegotiate minimum order quantities, improve payment terms, and reduce dependency on suppliers with rigid capacity models.

🧾 Purchasing Managers Index (PMI)

The PMI is an economic indicator derived from monthly surveys of private sector companies, measuring the performance of the manufacturing and services sectors. It covers metrics such as new orders, inventory levels, production, supplier deliveries, and employment. A PMI above 50 indicates expansion, while below 50 suggests contraction. Keeping track of PMI data can help business owners anticipate changes in economic activity, demand for products, and supply chain conditions.

Slight dip from 49.0 to 48.7.

Why it matters: A sustained reading below 50 means businesses are pulling back, placing fewer orders, slowing production, and holding less inventory. If you’re in manufacturing, this often leads to delayed customer POs, tighter margins, and increased price sensitivity.

What to consider: Now is the time to get lean. Reassess open supplier orders, reduce excess stock, and reprice any parts tied to declining demand. We’re working with clients to trim sourcing waste, improve cash flow through faster-turning suppliers, and protect margins as the economic cycle softens.

🌍 Global Hot Topic: Global Manufacturing Feels the Pressure of U.S. Tariff Policy (Click To Read Article)

Recent manufacturing data from Asia, Europe, and the Americas shows a broad-based slowdown tied to uncertainty from the U.S.’s aggressive tariff policy. PMIs across key economies—including China, the U.S., South Korea, and Brazil—fell sharply in April, signaling shrinking factory activity and supply chain disruption. While there were isolated signs of strength (like India and marginal improvement in Europe), overall confidence remains weak. Many businesses are delaying investment decisions, unable to plan amid volatile trade conditions.

Why It Matters:
The ripple effects of tariff-driven uncertainty are now clearly visible across global supply chains. For manufacturers, this means delayed deliveries, rising costs, and broken supplier relationships. Companies that proactively diversify sourcing, develop backup suppliers, and reduce offshore exposure will be best positioned to navigate the instability. At Ena Source, we help small and mid-sized manufacturers build that kind of strategic resilience—before disruption turns into downtime.

🇺🇸 US Hot Topic: U.S. Ends Duty-Free Shipping from China: What It Means (Click To Read Article)

The U.S. government has officially ended de minimis duty exemptions for low-value shipments from China and Hong Kong, a move primarily aimed at stopping illicit goods like fentanyl but also directly impacting e-commerce giants like Shein and Temu. All shipments, regardless of value, are now subject to new tariffs up to 145%, unless explicitly exempt (e.g., smartphones). This change affects over $5 billion in annual trade and could reduce U.S.-bound air cargo from Asia by 75%, straining logistics networks and increasing import costs across sectors.

📈 Our Monthly Stock/ETF Pick

$BRK-B – As one of the largest diversified holding companies, Berkshire Hathaway operates across insurance, energy, transportation, and manufacturing, with major equity stakes in companies like Apple and Coca-Cola. Backed by over $300B in cash and a legacy of disciplined investing, Berkshire is well-positioned to navigate market uncertainty. As leadership transitions from Warren Buffett to Greg Abel, BRK-B remains a long-term, value-driven investment anchored in stability and broad exposure to the U.S. economy.

• As always, it’s not about timing the market, it’s about time in the market

• Disclaimer: This is not financial advice or a recommendation for any investment. The content is for information purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

🚀 Your Supply Chain, Your Competitive Edge

Supply chains aren’t just about logistics—they’re about your bottom line, your growth, and your ability to outpace the competition. At Ena Source, we don’t just find suppliers; we engineer strategic supply chain solutions that cut costs, build resilience, improve reliability, and free up your cash flow.

If you’re curious how much you could be saving, let’s talk. No pressure. No cost. Just clarity.

📩 Click here to book a meeting. Resilient supply chains don’t happen by chance—they happen by choice. Let’s build yours, strategically.

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