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U.S. equipment makers are still dealing with supply chain disruptions nearly three years after the pandemic began to hamper the flow of goods around the world.
98% of industry executives said they still face supply chain issues, while 58% said conditions is getting worse, according to a survey by the Equipment Manufacturers Association. The shortage of workers is also a major concern.
“Too many device manufacturers are still feeling the impact of the COVID-19 pandemic and supply chain disruptions on operations, component lead times, workforce engagement, and efficiency.” finance,” Kip Eideberg, the trade group’s senior vice president of government and industry relations, said in a statement.
Producers on average forecast they will see output fall 8.2% next year, a slight improvement from an estimated 12% decline this year. They also estimate average margins will fall 6.4% in 2023, following this year’s 8.6% slide.
Delivery time, or the length of time from placing an order to receiving a product, remains a major obstacle. They have grown from an average of about two and a half months in 2019 to nearly seven months this year, the survey found.
Some parts are particularly difficult for manufacturers to obtain. The agricultural industry is facing a shortage of crawlers, typically rubber wheels for agricultural vehicles. According to AEM, semiconductors and other microchips are also in short supply for agricultural and construction equipment manufacturers.
The trade group in October surveyed executives from 179 manufacturers, including 112 original equipment manufacturers and 56 component manufacturers.
