36 MAY / JUNE 2022 Wiring Harness News INDUSTRIAL INFO-TAINMENT
Navigating Supply Chain Challenges in Wire and Cable
By Wesco International ___________________________
Like many other industries , the electrical wire and cable industry has faced new challenges over the last two years . And as we all know , the global supply chain is more complicated and dynamic than ever before . Increased manufacturing demands and shortages of labor and products are just a few of the issues we face . Let ’ s review market trends impacting the industry and how effective planning and informed decision making can help you adapt .
STATE OF THE INDUSTRY
takes to receive those imports . Labor Shortages
Tariffs also multiplied the number of manufacturing companies reshoring and bringing manufacturing facilities from overseas to North America , increasing manufacturing demands . While labor shortages have been an industry challenge for some time , the Covid-19 pandemic has exacerbated the situation . Availability of labor is one of the biggest challenges we have seen for manufacturers to produce cable and keep the lead time short . Manufacturers surveyed by Deloitte in 2021 found that it ’ s 36 % more difficult to hire talent than in 2018 .
Some of the supply chain challenges the industry is currently experiencing can be traced back to 2018 tariffs on goods from China . From a cost standpoint , this involves the importation of products and the reduction of transport services . This impacts the number of imports that the U . S . currently receives and the time it
Rising Costs and Inflation In addition to labor shortages , the rising cost of commodities and inflation has caused many manufacturers to allocate material so supply may continue to be constrained . According to the U . S . Consumer Price Index , in 2021 , aluminum hit a 13-year high , and the price of copper ended 44 % higher in Q3 2021 than the prior year , with consistent increased demand in
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Most of us expect life to run smoothly . But we don ’ t spend much time thinking about what it takes to make that happen . Wesco does . Every day we leverage our tech-enabled supply chain solutions and help build a world you can depend on .