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11.06.09

Manufacturers Cite High Level Of Supply Chain Risk

By Mike Sachoff

More than one-third of North American manufacturers have experienced a significant supply chain disruption in the past three months, according to a new survey by MFG.com.

When asked if they or their customers had experienced a significant supply chain disruption in the past three months, 38 percent of both buy-side and supply-side manufactures indicated they had. While more than 50 percent of each group said their supply chains had been stable, 38 percent indicates a high level of activity in managing and responding to risk.

In terms of specific supply chain risks, buy-side OEMs cited material costs (47 percent) and supplier stability (39 percent) as the most important issues to their companies. Supply-side manufacturers identified customer stability as the most important issues by a wide margin (82 percent).


Data also indicates that North American manufacturers are seeing business conditions stabilize. While both audiences say they've reduced staff during the past three months (suppliers - 43 percent, buyers - 28 percent), they also expect to maintain or add more employees in the coming three months (suppliers 72 percent, buyers 75 percent).

"As North American manufacturing emerges from recession and continues to become more global, businesses are finding supply chain risk mitigation and management to be top of mind," said Mitch Free, founder and CEO of MFG.com.

"This survey shows that while extended supply chains are presenting manufacturers with immediate challenges, they are also seeing stabilization in business activity, as evidenced by their expectations to hire more employees."


About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
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