Provide chain issues proceed to plague chemical business
The vast majority of enterprise leaders surveyed by the American Chemistry Council (ACC) mentioned the disruptions are affecting their U.S. manufacturing enterprise, with most reporting that they’ve modified operations due to provide chain points and/or transportation disruptions that occurred within the latter half of 2022.
The ACC survey targeted on enterprise impacts via the second half of 2022 (H2) in comparison with situations within the first half of 2022 and in comparison with situations previous to the pandemic. Total, the outcomes present that transportation-related provide chain points moderated throughout the second half final 12 months however proceed to be worse than situations previous to the pandemic.
“There are indicators that situations have improved, however the transportation issues plaguing our members are removed from resolved,” Emily Sanchez, economist for ACC, mentioned in a press launch saying the survey’s findings. “Marine and truck transportation have improved whereas poor rail service continues to be a serious concern.”
Key survey findings embody:
- 93% of firms mentioned provide chain and freight transportation disruptions are impacting their US chemical compounds manufacturing enterprise.
- In comparison with situations within the first half of 2022, 67% of firms reported provide chain and freight transportation disruptions had been typically higher within the second half of the 12 months. In comparison with situations previous to the pandemic, nonetheless, 83% of firms say they’re worse.
- 86% of respondents mentioned they modified operations due to provide chain points and/or transportation disruptions and delays in H2.
- In each the primary and second half of 2022, about 36% of firms mentioned their clients canceled orders as a result of they had been involved these orders wouldn’t arrive or wouldn’t arrive on time.
- Provide chain points and transportation disruptions proceed to push up transportation prices. Greater than half (62%) of chemical producers noticed prices rise over H2.
Survey respondents additionally mentioned that coverage reforms are essential to right the issues affecting chemical provide chains. These embody actions to extend competitors and set up minimal service requirements within the rail business, and efforts to extend gross car weight limits for interstate highways to assist alleviate trucking capability constraints.
