The market for supply chain management software applications, maintenance and services, or SCM, came in at $6.2 billion in 2009 including applications for procurement software and $4.2 billion without procurement.
That represented a decline of 1.9% from 2008, according to Chad Eschinger, an analyst with Gartner: (203-964-0096). While most businesses would have been proud to only show a 1.9% drop in revenues last year, it’s a far cry from the growth this industry has been used to posting.
In fact, it’s the first time the market has declined since Modern began publishing our annual Top 20 list in 2001. Just two years ago, AMR Research, now part of Gartner, was forecasting the total supply chain management market to reach or exceed $8 billion by 2010. That just isn’t going to happen. “It was a very difficult year,” says Eschinger.
Last year was a year for the status quo. The market leaders look much the same as they did in 2008, with SAP ($820 million) and Oracle ($715 million) at the top of the list, with numbers that were essentially unchanged from last year. They were followed by JDA Software ($385.6 million), RedPrairie ($261 million) and Manhattan Associates ($247 million).
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The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.
The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.
Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.
Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.
While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.