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Wed December 14, 2022 - National Edition #2
A new survey of more than 150 equipment manufacturing companies released Dec. 14 by the Association of Equipment Manufacturers (AEM) warns that U.S. equipment manufacturers continue to face supply chain issues and a persistent labor shortage nearly three years after the onset of the pandemic.
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 profit margins. The survey also asked about availability of components and optimal inventory levels, and queried executives about solutions to address these supply chain challenges.
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," said Kip Eideberg, AEM's senior vice president of government and Industry relations. "The impact of this supply chain crunch is only worsened by nation-wide workforce shortages seen across country, which is particularly noticeable on our shop floors."
"AEM continues to survey our member company executives to better understand how they are impacted by continued high inflation, strained supply chains, and global instability, and to provide elected officials with the data points they need to move legislation that will revitalize U.S. manufacturing and bolster U.S. global competitiveness," Eideberg continued.
"Republicans and Democrats can take immediate action by extending R&D expensing, enacting meaningful permitting reform, removing tariffs on a range of critical components, and reaching a bipartisan agreement on the debt ceiling."
AEM conducted this survey in October 2022. Executives from 179 equipment manufacturing companies completed the survey, including 112 original equipment manufacturers and 56 component manufacturers.
The survey's key findings include:
For more information, visit www.aem.org.