Supply Chain Shortages & Its Impact On Manufacturing

16 130 % TOP CONTRIBUTING FACTORS THAT LEAD TO SUPPLY CHAIN ISSUES FOR MANUFACTURERS 120 % 110 % 100 % 90 % 80 % SUPPLY CHAIN SHORTAGES & ITS IMPACT ON MANUFACTURING Increased cost of raw materials Product and component shortages Domestic supplier interruptions • 64.6 % of small American manufacturing firms experienced this in July 2021 Dependence on foreign suppliers Issues surrounding labor shortages , employee attraction and retention , etc. • In 2020 , the U.S. manufacturing industry shed 578,000 jobs Apr 2020 Jul Oct 191.0 + ggo ● ● Jan 2021 SUPPLY AND DEMAND FOR GOODS A line chart demonstrating personal consumption of goods has risen faster than consumption of services since February 2020 ● Longer lead times Transportation / logistics issues and elevated costs LICE Rising health care and insurance costs Trade uncertainties Source : U.S. Bureau of Economic Analysis via Federal Reserve Bank of St. Louis . Production delays • 57 % of American consumers reported experiencing significant delays when receiving an ordered product in 2021 NOW WHAT ? Shifts in consumer activity Apr • Boost customer service and transparency efforts am - quip + • Invest time into supplier mapping Jul Improve communication and relationships with key players Diversify and localize more of the supply • Utilize advanced operational analytics Goods • Invest in on - shore manufacturing and supply Services Expand on - going maintenance capabilities to ensure existing challenges are not compounded by preventable equipment breakdowns • Automate common and undemanding tasks where possible the - effects - of - the - supply - chain - crisis - on - manufacturing - and - construction | thirdway.org/report/the-supply-chain-crisis-whats-behind-it what - to - do - about - it | cfr.org/article/what-happened-supply-chains-2021 Sources : eidebailly.com/insights/articles/2021/9/supply-chain-disruption-continues-what-manufacturers-should-do | lairedigital.com/blog/