A survey of more than 150 equipment manufacturing companies released by the Association of Equipment Manufacturers warns that U.S. equipment manufacturers continue to face supply-chain issues and a persistent labor shortage nearly three years after the pandemic began.
AEM surveyed 179 equipment manufacturing executives on the causes of supply-chain disruptions and bottlenecks and the impact it has on production, lead times and profits. The survey also asked about availability of components and optimal inventory levels, and queried executives about solutions to address these supply chain challenges.
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Nearly all respondents (98 percent) still face supply-chain issues, with more than half of respondents (58 percent) experiencing continuously worsening supply-chain conditions. The two driving factors of current supply-chain disruptions are workforce shortages and access to intermediate components for production.
“Far too many equipment manufacturers still feel the impact of the Covid-19 pandemic and supply-chain disruptions on operations, lead times on components, labor force participation and financial performance,” says Kip Eideberg, AEM’s senior vice president of government and Industry relations. “The impact of this supply-chain crunch is only worsened by nationwide workforce shortages seen across country, which is particularly noticeable on our shop floors.”
AEM conducted the survey in October. Respondents included 112 original equipment manufacturers and 56 component manufacturers.
Key findings include:
