Fri Aug 10, 2018, 09:43 AM

Parts Shortages Crimp U.S. Manufacturers

Suppliers of everything from engines to electronic components aren’t keeping up with a boom in U.S. manufacturing thanks to strong economic growth, lifting demand in markets such as energy, mining and construction. As a result, some manufacturers are idling production lines and digesting higher costs.

Many industrial companies have reported strong sales and profits in recent weeks, and the pace of factory hiring has more than doubled this year compared with the first seven months of 2017.

However, deliveries from suppliers have slowed for 22 consecutive months through July, according to the latest survey of U.S. manufacturers by the Institute for Supply Management. More than one-quarter of respondents said it took longer for materials to arrive in July than June. Machinery was the hardest-hit sector.

These bottlenecks were evident in the earnings reports manufacturers delivered over the past few weeks.

I thought this was an interesting article about the challenges manufacturers are having trying to keep up with demand. This should mean either more jobs or higher wages as suppliers attempt to meet demand.

3 replies, 242 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 3 replies Author Time Post
Reply Parts Shortages Crimp U.S. Manufacturers (Original post)
FreeWheelBurning Aug 2018 OP
Deplorable Aug 2018 #1
Troll2 Aug 2018 #2
Deplorable Aug 2018 #3

Response to FreeWheelBurning (Original post)

Fri Aug 10, 2018, 09:55 AM

1. We are having major problems sourcing electrical conponents

Snall stuff like resistors, capacitors and transistors. Suppliers have limited inventory and give them out piecemeal to distributors. It's really affecting our ability to meet demand. When supply catches up our business should explode. Thank you president trump!!!!!

Reply to this post

Back to top Alert abuse Link here Permalink

Response to Deplorable (Reply #1)

Fri Aug 10, 2018, 03:03 PM

2. What countries are these components sourced from?

Any US manufacturers any more?

Reply to this post

Back to top Alert abuse Link here Permalink

Response to Troll2 (Reply #2)

Fri Aug 10, 2018, 03:47 PM

3. Military hardware. US companies only.

There is still plenty being made in America.

Reply to this post

Back to top Alert abuse Link here Permalink