Executive Briefings

Survey Shows Continuing High Levels of Supply Chain Risk

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.

When asked, 35 percent of purchasing professionals said they had experienced a significant supply chain disruption and had to seek alternative sources to recover. And 34 percent 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 experienced supply chain disruptions, a significant number and trend.

Also, expectations for excess capacity and employment growth expressed last quarter did not fully materialize. In October 2009, 62 percent of survey respondents said that they expected to maintain the capacity of their plants in the coming quarter - but only 34 percent said they had in the most recent survey. As for employment, 13 percent of manufacturers stated in October that they anticipated staff reductions, but 38 percent actually reduced staff.

MFG.com, reportedly the largest global sourcing marketplace for the manufacturing industry, conducted its latest two-part survey in early January 2010, targeting supply-side manufacturers and buy-side original equipment manufacturers  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. 

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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.

When asked, 35 percent of purchasing professionals said they had experienced a significant supply chain disruption and had to seek alternative sources to recover. And 34 percent 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 experienced supply chain disruptions, a significant number and trend.

Also, expectations for excess capacity and employment growth expressed last quarter did not fully materialize. In October 2009, 62 percent of survey respondents said that they expected to maintain the capacity of their plants in the coming quarter - but only 34 percent said they had in the most recent survey. As for employment, 13 percent of manufacturers stated in October that they anticipated staff reductions, but 38 percent actually reduced staff.

MFG.com, reportedly the largest global sourcing marketplace for the manufacturing industry, conducted its latest two-part survey in early January 2010, targeting supply-side manufacturers and buy-side original equipment manufacturers  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. 

Read Full Article