A recent survey finds manufacturing companies experienced growth in 2015, expect more for the rest of 2016, and view supply chain management improvement as key to their ability to compete.
The 2016 MFGWatch Manufacturing Report also finds that many firms say they plan to invest more in their workforces and development of new technology, along with spending more on certain advanced manufacturing processes to improve their competitive advantage.
MFG.com, an online directory service for suppliers to manufacturers, says its survey shows that logistics and shipping costs, product quality compliance and the availability of competent suppliers were cited by a majority of surveyed buyers to be major and continuing threats to their global supply chains.
However, only 33% of the surveyed sourcing professionals reported said that they experienced a supply chain disruption in 2015, down from 42% in 2013’s survey.
“Historical data shows that 2015’s 33% is the lowest percentage of buyers experiencing a supply chain disruption in the Watch’s history,” MFG said.
In addition, 56% of those surveyed reported experiencing no supply chain disruption in 2015, indicating general stability in the manufacturing industry throughout the year.
Sourcing parts and products from China and India is down and the situations in those countries have become a concern, which has led manufacturers to source from new markets in other parts of Asia, Europe and South America.
Also, 20% of respondents say that they or their companies are planning to reshore at least a portion of their sourcing activities to North America by the end of 2016.