Tracking the Supply Chain

We’re in for another smorgasbord of economic reports this week, with key statistics about jobs, industry, credit and housing on the agenda.

Some of this macro data normally wouldn’t get much of a look – outside of certain analysts’ offices – in the sluggish weeks leading up to Labor Day. But this is no ordinary August, with the ongoing summer rally in U.S. stock markets, relatively upbeat GDP and car sales numbers and other signs prompting pundits to whisper of an end to the recession.

Take time to digest the Institute for Supply Management releases out this week. This trade group for supply and logistics professionals has been publishing these closely watched surveys since 1931. Monday’s ISM manufacturing report, which showed that sector still is weak but getting stronger, drove much of yesterday’s market gains, shoving the Nasdaq and S&P 500 indices to peaks not reached since last fall.

Out tomorrow is the mirror image of Monday’s release: the ISM Non-manufacturing survey. It reports on activity in sectors as wide-ranging as pet care, dry cleaning, entertainment, forestry and utilities, among many others. Each report is issued monthly; peruse the site for the methodology behind these reports, which are based on input from managers at the ISM’s member companies.

Keep in mind that despite the ISM’s focus on supply, the surveys deal with a variety of data from prices to employment to inventory levels; you can use the macro results to formulate questions for companies in your region. How are they faring compared to the national average?

Supply and logistics might sound sort of dry but is actually a rich source of ideas and information. And one way or another probably employs a good segment of your audience. Another trade group, the Council of Supply Chain Management Officials, offers educational resources and factoids on its Web site and says that the U.S. spending on logistics is larger than the GDP of all but 10 countries on the planet.

Definitely a sector worth understanding, and you’ll be well served by getting to know the players in your territory. If you’ve a shipping port or airport handy, start there, because transportation clearly is a huge part of the nation’s supply chain. Trucking firms, trucking schools, warehouses, service hubs – the list of story-worthy companies is legion. And it’s not all car parts on pallets – think Netflix or Amazon.com or livestock for interesting story springboards.

Other supply and logistics resources include the international Supply Chain Council, about the and oddly enough, a Logistics forum on About.com. This list of supply chain resources, courtesy of the University of Wisconsin library system, also is very helpful.

Housing data heads-up

Just a reminder that the National Association of Realtors monthly pending home sales index also is being released today; at the very least you’ll want to get a short story up on your Web site. Here’s a look back at an earlier tipsheet on localizing real estate stats.

Come back to Your Daily Tipsheet each morning for advice on where to find sources, background and creative ways to make financial news and trends relevant to your audience.