Manufacturing Supply Chain Disruptions Could Last into 2023

Supply chain disruption could continue for more than another year, according to the newest Resilient M4.0 Supply Chain survey conducted by the National Association of Manufacturers’ Manufacturing Leadership Council.  A combination of factors is causing major fundamental shifts in supply chain approaches across the industry. These include pandemic lockdowns, blocked shipping lanes, container scarcity, material and component shortages, extreme weather events, rising prices and military conflict.

As a result of these disruptions, supply chain organizations are reassessing traditional supply chain strategies, reducing network complexity and integrating key functions. Many are also redesigning processes and harnessing the power of digital tools to transform their supply chain ecosystems.

Still, even supply chain structures with some local or regional networks have been affected by recent events, according to the MLC’s survey. Ninety percent of respondents reported suffering either significant (52.5%) or partial (39%) disruption in the past two years. Meanwhile, just 0.5% said they had seen no disruption

While many manufacturers have taken action to reduce supply vulnerabilities, 73% of companies said their current supply chains are not fully protected, and 12% said they believe their supply chains lack resilience. Only 19% of companies said their supply chain structures are fully integrated, yet this proportion is set to more than double (to 47%) within the next two years. 

There’s also an increased focus on digitalizing supply chain operations. Many companies said they are planning significant increases in digital adoption in the next two years to streamline their supply chain organizations.

Many obstacles to future supply chain development involve issues with industry partners. These include differences in digital maturity among partners (54%), a lack of common data platforms (53%), issues transforming traditional supply chain processes (29%), a need to upgrade legacy equipment (26%), and an overall lack of skilled employees (22%).

scroll to top