Manufacturing delays make it harder to get these 6 things
Manufacturing increased in May for the 12th consecutive month after the economic contraction of April 2020, according to the Institute for Supply Management (ISM). It’s a powerful statement about the strength of the economy, but the ISM report wasn’t all good news. Manufacturing plants are waiting longer and longer for the materials they need. The average wait time is now 85 days, the longest since ISM started keeping an eye on in 1987. That leaves many unhappy customers clamoring for finished goods as their already shallow stocks dwindle.
Several powerful forces are at work. Post-COVID demand is sky-high, gas and therefore transportation is expensive, competition for labor is fierce, and prices are rising as inflation continues to rise.
Not all industries feel this kind of pinch, and those that don’t feel it the same way. The following is a list of a half a dozen products whose supply is particularly tight due to supply chain issues that the manufacturing sector has still failed to address.
Last updated: July 5, 2021
Home improvement supplies
Whether you’re planning a home makeover or planning to bring in the professionals, you should expect high prices and delays until 2022, according to USA Today. Expensive household items like appliances are scarce, as are vinyl siding, windows and doors, and by far lumber.
Things are getting so bad that authorities in hurricane states like Florida are urging residents to order storm preparedness materials like impact glass and plywood now – storm season should be active. The problem is, delays push orders back three to five months, and hurricanes will be over by then.
One of the biggest headaches plaguing global manufacturing today is a global shortage of semiconductor chips that breathe life into just about everything in the modern world – but nowhere is the pain acute except in the ‘automobile industry. Modern cars can’t run without chips, but with computers and other electronics usually on the front lines, the auto industry is falling to the bottom of the totem pole.
As of mid-June, problems in the semiconductor segment had delayed production of 500,000 vehicles worldwide, including law enforcement vehicles that cannot operate without a smart key fob. Some of the most popular cars in America, like the Ford Bronco and the F-150, are still experiencing delays.
Many forces have contributed to the global chip shortage, but the biggest problem has been a huge increase in demand for consumer electronics during the pandemic, which put more strain on the semiconductor industry than it did. she couldn’t handle it. Today, suppliers are still dealing with the fallout from shortages and are struggling to meet demand for their own finished products. Blocking the chip shortage means less selection and longer wait times for:
The furniture industry is seeing an almost unprecedented surge in demand as people return to work in desks in need of desks and chairs, scrambling to furnish homes purchased during the hottest real estate market in years or modernize their existing homes for the first time in 18 months.
Business is booming, but the industry has fallen victim to its own success. The crushing of new demand has created bottlenecks all along the supply chain, from clogged ports to factories that cannot hire enough workers. The result is months of manufacturing delays that have made “out of stock” the unofficial slogan of the furniture industry.
On June 23, the Idaho Mountain Express joined a growing chorus of voices expressing concern over a bottleneck of outdoor equipment and supplies – a big business in natural tourism states like the Idaho. The themes were familiar. The supply chain dysfunction caused by COVID collided with an avalanche of pent-up demand and the industry was caught off guard.
As the Mountain Express points out, consumer sales are at least a year behind the manufacturing process in the outdoor gear industry. This year’s new outdoor merchandise was made during or before the pandemic. This has made it nearly impossible to plan for two waves of record demand – one in 2020 when people came out in droves to avoid the crowds and one now that restrictions are lifted.
Companies like Mattel and Hasbro spent much of the pandemic scrambling to meet increased demand for toys and board games as families struggled to say sane during their 40s. Small businesses, however, suffered steep declines as some board game sales plummeted when meetings with outside groups became impossible.
The New Year was supposed to change all of that, but freight shipping costs – board games are made mostly overseas – rose 300-400% at the end of June, with shipping times being delayed by four to four. six weeks.
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