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Analyst Insight: Key regulatory deadlines for per- and polyfluoroalkyl substances (PFAS) are fast approaching, and will create significant hurdles for manufacturers. These difficulties are compounded by the fact that chemical manufacturers are phasing out PFAS, introducing the risk of obsolescence for both parts and production equipment. It’s essential that manufacturers act quickly to gather detailed supply chain data to assess PFAS risks and prevent costly disruptions.
PFAS, also known as “forever chemicals,” are long-lasting substances that pose significant environmental and human health risks. A growing number of regulations are being introduced to mandate reporting, or place limitations, on their use.
For complex manufacturers, rigorous data-collection processes have become essential to navigating the fast-evolving PFAS regulatory landscape. Companies should already be well into obtaining substance-level data from the supply chain to identify existing PFAS risks. This collection process should include examining not only parts and products but also production processes and equipment, as the phase-out of PFAS by 3M and other chemical manufacturers is likely to affect component availability.
This phase-out is one of the primary challenges that manufacturers will face regarding PFAS in the coming years, as it is likely to trigger a ripple effect across supply chains. Companies with reactive programs run the risk of being confronted with shortages when attempting to reorder, leading to costly production delays.
Additionally, state-level PFAS regulations in the U.S. are picking up speed, often surpassing federal requirements and timelines. To successfully mitigate noncompliance risks, manufacturers need to monitor these developments closely. This goes beyond managing reporting obligations, as companies need to better understand how bans and limitations could impact their production capabilities across various regions.
Lacking substance-level data can leave manufacturers vulnerable to costly supply chain disruptions. For instance, if a critical part becomes unavailable, it can create a “line-down” scenario in which there are immediate and cascading impacts throughout a supply chain, and production is halted entirely. Such interruptions often result in immediate financial losses, damage customer trust, and tarnish the company’s reputation, creating long-term business challenges. A modest investment in data collection and effective supplier communication now will pay off in dividends later.
In the longer term, PFAS regulations are likely to continue, and will accelerate the need for transparency and detailed substance-level data. A future is fast approaching where reactive compliance will not be a sustainable strategy. Instead, manufacturers will need substance-level data from their supply chains to support proactive and informed decision-making, to ensure continued compliance with evolving requirements and meet stakeholder expectations.
Those who have already begun to take action are better positioned to meet current and future requirements, creating a competitive advantage in a market that demands efficiency and reliability. This approach will prove valuable beyond immediate needs related to PFAS regulations and parts obsolescence, as it is increasingly evident that substance-level data will likely be the new standard for a range of evolving regulatory requirements.
Outlook: To reduce risk, manufacturers need to take a proactive stance toward managing their supply chains. More specifically, this will require strengthening communication with suppliers and having a complete understanding of products at the substance level.
Resource Link: https://www.assent.com/
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