ATLANTA–For the second straight quarter, more than one-third of North American manufacturers responding to MFG.com’s MFGWatch survey say they’ve experienced a significant supply chain disruption in the past three months.
expectations for excess capacity and employment growth expressed last quarter
did not fully materialize. In October 2009, 62% responded
that they expected to maintain the capacity of their plants in the coming
quarter – but only 34% said they had in the most recent survey. As for
employment, 13% of manufacturers stated in October that they anticipated
staff reductions, but 38% actually reduced staff.
MFG.com conducted its latest two-part survey in early
January 2010, targeting supply-side manufacturers and buy-side original
equipment manufacturers (OEMs) throughout North America. The survey drew
responses from 334 manufacturers of parts and services, purchasing professionals
and engineers. An array of industries, including automotive, aerospace, medical,
industrial equipment, consumer products and textiles are represented in each
MFGWatch quarterly survey.
asked, 35% of purchasing professionals said they had experienced a
significant supply chain disruption and had to seek alternative sources to
recover. And 34% of supply-side manufacturers stated that they had
received queries from buyers experiencing supply chain disruptions within the
past quarter. For the second quarter in a row, one-third of all manufacturers
responding have stated that they have experienced supply chain disruptions, a
significant number and trend.
the October 2009 MFGWatch survey, only 6% of sourcing and purchasing
professionals said that they expected to reduce the number of their active
suppliers by year’s end. Instead, 19% say they in fact reduced their
supplier base during that time. Similarly, while 40% of the same group
indicated in October that they expected to add suppliers, only 23 % did
terms of specific supply chain risks, buy-side OEMs cited material costs (47% ) and supplier stability (46%) as the most important issues to
their supply chains. Supply-side manufacturers identified customer stability as
the most important issue for the second straight quarter (81%).
continues to lag behind other sectors in the American economy -- and of all the
challenges we face, employment appears to be the most serious at the moment,”
said Mitch Free, founder and CEO of MFG.com. “While there are opportunities, and
the national debate is focusing more on manufacturing’s role in our economy, it
will be difficult to take full advantage until we revitalize manufacturing
investment and stimulate growth.”