Hey, the Numbers Are Talking—And They’re Saying We’re Not Rolling in the Dough!
Got your eye on the latest invoice buzz? The Demica Index is the go-to scorecard for 1,200 corporate giants across Europe and North America, crunching millions of invoices daily to reveal who’s truly stealing the spotlight.
What’s the Scoop for Q3?
- Coffee & Hospitality: Sales dipped—more lunches, less money in the pockets.
- Technology: Also saw a slump—no wonder gadgets stayed in the drawer.
- Construction & Real Estate: The biggest heartbreak, where every hammer hits a hollow.
- Retail & Manufacturing: The only bright spot—still hustling, still hauling.
Why It Matters
The index’s daily updates keep the data fresh, giving an instant snapshot of sector health. Think of it as the financial newsfeed of the gig economy, but for the biggies.
What Makes This Index Unique?
Unveiled in January 2020, the Demica Index leverages anonymised invoice data from over a thousand corp techs, providing a lens that’s 360°—no biases, no fluff. It’s the real-time, honest version of “How’s the market?” For those who want to keep it 100% honest, this is it.
Transportation and logistics
The Shipping Sector Takes a Hard Hit in Q3 2023
Plain facts, no fluff: The transport and logistics arena plunged 27% in sales value from the third quarter of 2022 to the same period in 2023, according to Demica figures. Not a trivial drop.
The Sales Roller‑Coaster
- Just like last year, the numbers started climbing in July, hit a peak in August, then dipped again in September.
- This up‑and‑down pattern mirrors what happened in 2022 – a clear sign the industry is still treading water.
Why the Slump?
Think of the market as a well‑balanced equation:
- High inventory levels – more goods than the market can absorb.
- Low demand – buyers are on holiday and aren’t filling up the trucks.
- Expanding capacity – ships and road freight just keep piling up.
When those three forces get mixed, rates slide – like a ship slowly losing speed as the wind goes out.
Freight Recession in the US
In America, a freight recession suggests a crew readjusting after the pandemic‑era fuel and cargo boom. The market’s breathing down its neck as it watches demand drop.
Air Freight – Still Higher Than Old Time
Even though air freight tariffs are tumbling, they’re still higher than pre‑COVID days. For now, jet fuel and cabin crew costs are keeping the price tags from falling to their historic lows.
In short, the shipping game’s got a few bumps ahead. Buckle up – it’s not all smooth sailing.
Maersk’s Shipping Saga: A Tale of Peaks, Valleys, and a Vanishing Profit
Picture this: Maersk, the global shipping champ, flexed its muscles with a dazzling Q3 performance last year, turning heads and pockets alike. Fast forward to the latest quarter, and that glow might have dimmed, with the company potentially losing a chunk of earnings, according to whispers in the industry.
The Convoy Conundrum
Meanwhile, across the pond, Convoy – the U.S. digital freight brokerage known for its slick online platform – announced its shutters closing in October. The reason? A “massive freight recession” coupled with a squeeze in the capital markets. In other words, the freight world hit a rough patch, and investors pulled their backing.
What Does This Mean for Shipping?
- Demand is weakening: Businesses are balking at hiring freight, so fewer cargoes line up for Maersk.
- Cash flow worries: With tight capital markets, even big players struggle to cover costs.
- Industry shake-up: The fall of Convoy signals that digital freight models are not immune to economic downturns.
In short, the maritime market is gripping a hard lesson: Even top-tier vessels can feel the strain when the global economy takes a dip. Stay tuned—shipping’s next chapter might surprise us.
Paper and packaging
Paper Packaging: 2023’s Wild Ride
In the past few months, paper and packaging have felt a real shake‑up. The Demica Index tells us sales values took a nosedive of 24 % in Q3 2023 compared with Q3 2022. Even within the quarter, numbers slipped instead of climbing as they did a year ago.
Why the slide?
- Consumers are spending less—stuff like snacking, home kitchen kits, and post‑pandemic habits are all pulling a bit of the economic muscle.
- Europe and North America are tightening the screws on sustainability, pushing paper companies to shift gears faster than a hovercraft on a rope.
The silver lining
Long‑term, the paper‑based world still has a bright future. Plastic usage is on the decline, so paper can step up as the go‑to alternative. Packaging is proving resilient because the supply chain is turning its back on paper to harness digital docs, and that shift doesn’t boil away the need for honest‑to‑goodness, practical packaging.
What’s pulling the paper cart forward?
- E‑commerce is still exploding, craving sturdy, eye‑catching bags and boxes.
- Innovative paper packaging is becoming the star of the show—think smart labels, recyclable composites, and “wow” designs that keep consumers hooked.
Future Market Insights gives a hopeful forecast: a global paper packaging market expected to grow at a 4.1 % CAGR up to 2033. That’s the good news tank that keeps the industry from stalling even when sales are a bit rocky now.
Computer and electronics
Q3 2023 Tech Sector: A Roller‑Coaster Worth a Notebook Upgrade
Ever notice that the computer‑and‑electronics market feels like a seasonal drama? The Demica Index confirms it: sales dip in July, shoot up in June, then bounce back in September—just in time for school reshuffling. Think of it as the tech world’s version of “out of school, back to school.”
Since the Great Shift to Home Work
- After the pandemic, demand hit a plateau thanks to the sudden surge of “work from home” homes.
- Now, sales are pulling back: Q3 2023 revenues lagged 18% behind the same quarter last year.
- This isn’t a panic signal—just a familiar seasonal lull.
Big Names: TSMC and Samsung
TSMC, the chip titan backing giants like Apple and Nvidia, reported its Q3 earnings at T$211 bn—down from T$280.9 bn the year before. The drop, while eye‑watering, was still a disappointment relative to analysts’ grim forecasts.
Despite the decline, investors got the news with a smile: the stock climbed, hinting at a forthcoming PC and smartphone demand rebound.
Samsung also outperformed expectations in Q3, giving heels of confidence to the industry.
Apple’s Quiet Slip
Apple’s fiscal Q4 came to a close on September 30th, with revenue slipping 1% year‑on‑year—proof that even the master of surprises has off days.
Bottom Line
The tech market’s ebb and flow is a bit like a well‑tuned smartwatch: it always gets back on track. While sales may dip during school seasons, the momentum from the pandemic‑drive and corporate giants like TSMC and Samsung keeps the industry zipping forward.
Tier 1 Automotive (direct suppliers to an OEM)
Tier 1 Automotive Sector Rolls Up a Winning March in Q3 2023
While the market was a bit of a roller‑coaster in July 2022, the bright spark of post‑pandemic supply chain calm has finally settled in for the third quarter of 2023. The Demica Index tells us that sales in the tier‑1 automotive arena are looking steady – a clear signal that the industry is stacking its decks of high‑tech cars and high‑tech batteries with fewer hiccups.
Why the Upswing?
- Supply chain hiccups? Gone. The pesky bottlenecks that once had factories in a frenzy are now easing, giving suppliers a vacuum to fill.
- EV surge. Electric vehicles are the new front‑line soldiers in this battle.
Numbers that Matter
- Tesla. Delivery numbers in Q3 outpaced last year’s haul – the engineering folks did their bidding.
- BMW’s BEV line. An eye‑popping 79.6 % year‑on‑year jump in BEV deliveries.
- Polestar. Another 50 % increase in Q3 deliveries; the brand is knocking on the door of mainstream adoption.
Turning Up the Heat in China?
High‑end carmakers are still bumping into roadblocks on the Chinese market, a souvenir from the crescendo of tariffs and trade tensions. Demica’s data, though, mainly focuses on European metrics, so it doesn’t quite capture the seismic shifts caused by strikes in the U.S. plant floors.
Chief Commercial Officer Maurice Benisty Weighs In
“When the world emerges from the COVID storm, we’re witnessing a slowdown in Computers & Electronics as the demand dipped from flooded highs. Clients continue to turn to us for flexible working‑capital support to keep the cash flow humming while they stretch payment terms to ignite consumer appetite,” Benisty said.
He added that tier‑1 suppliers are finally filling the gaps left by stagnant demand in other sectors. Yet, for those tied closely to consumer spending, there’s a trickle: lower commodity prices snowballing into an expectation of slower growth, further dampening demand.
Future Outlook
Benisty rounds off with a gaze into tomorrow: “With “higher for longer” interest rates, the appetite for working‑capital finance should keep growing – even as inflation loosens across the U.S. and Europe. The tighter credit markets will push volumes into receivables and payables programs instead of the old school bank routes.”
What Demica’s Platform Brings
Our supply‑chain‑finance solution actively unlocks liquidity by financing both receivables and payables. As of December 31 2022, the platform managed a colossal $27 billion in assets under administration.
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