While more than 75 percent of suppliers are confident in their ability to meet their customers’ needs in 2013, one-third of respondents to the ASQ 2013 Manufacturing Outlook Survey say they anticipate a problem with a supplier next year, resulting in a shortage of parts or services.
Of the respondents who anticipate a problem with a supplier, 42.1 percent say they are working with partners on process improvements to mitigate volume capacity, while more than 26 percent are working with their suppliers’ competitors. Other manufacturers said they are stockpiling parts in advance of the issue and expanding facilities to make necessary parts themselves.
More than 1,250 manufacturing professionals from around the world responded to ASQ’s 2013 Manufacturing Outlook Survey, which was conducted online in November during World Quality Month, an annual, worldwide celebration of quality and its impact in the world. ASQ is the leading authority on quality in all fields, organizations and industries.
In addition to questions about their organization’s supply chain, the Manufacturing Outlook Survey also questioned respondents about their financial outlook for 2013. The results were nearly identical to last year’s responses.
Nearly 65 percent of respondents say they anticipate an increase in revenue in 2013, and 70 percent said they experienced revenue increases in 2012.
In comparison, and in the survey conducted last year in anticipation of 2012, 66 percent of respondents expected revenue growth in 2012 and 70 percent of respondents last year said they experienced revenue growth in 2011.
According to the 2013 Manufacturing Outlook survey results, 33 percent of respondents anticipate a shortage of parts due to a problem with a supplier in 2013, while 37 percent say they don’t expect an issue, and just less than 30 percent of respondents aren’t sure.
When asked about the past, 80 percent of the respondents say they have been adversely affected by a supplier’s inability to meet their needs. Of those negatively affected in the past, 25 percent went to their suppliers’ competitors to get the needed parts. Just more than 30 percent worked with their suppliers on process improvement to mitigate volume capacity constraints. Other manufacturers worldwide used up available inventory, manufactured the parts in-house, shut down production, or refocused efforts on other production areas.
Of the survey respondents, more than 60 percent say their organization has a formal process in place to address supply chain risk. Nearly 28 percent say they don’t have a process in place.