New Supply Chain Resilience Report Reveals the Extent of Disruption in 2022 and Expectations for 2023
A survey conducted by manufacturing platform Hubs in November 2022 with 334 respondents found that 76.6% of companies experienced some form of external disruption to their supply chain over the past year. This represents a rise in disruptions compared to the results of surveys conducted in 2020 and 2021. In the 2022 survey, material shortages were the top challenge, affecting 60.9% of participants. Likewise, 49.4% of respondents reported facing material shortages more often in 2022 compared to 2021.
COVID-19 was the second biggest cause of disruptions, affecting 57% of companies in 2022. China’s strict lockdowns, driven by its zero COVID policy, have severely affected the manufacturing output in the world’s manufacturing powerhouse. For example, the output of Apple iPhones is likely to drop by 30% due to COVID-related curbs at Foxconn’s factory in Zhengzhou. Other significant concerns among survey respondents included rising energy costs, logistics issues, container shortages, port congestion, natural disasters, and trade wars.
This report is based on a comprehensive review of industry news as well as survey responses from hundreds of our valued customers and manufacturing partners. Our goal was to provide insights and perspectives of those directly involved.
The report analyzes existing supply chain issues, makes risk predictions and provides strategies for mitigating disruptions in the future.
Highlights from the report include:
Five supply chain risks to watch out for in 2023.
A list of industries most vulnerable to supply chain disruptions in 2023.
Five solutions for strengthening supply chains in 2023.
The report also reveals data trends from engineers and manufacturing companies:
43.7% of companies believe that local sourcing will help strengthen their supply chains in 2023.
76.6% of companies experienced externally caused disruptions to their supply chains in 2022, with material shortages being the biggest challenge.
45.3% of companies had their supply chains impacted by the war in Ukraine.