Supply Chain Woes Plus Inflation Cause US Manufacturers to Hike Prices

It seems there is cause for some optimism. Nearly 45% of industrial product leaders expect supply chain disruptions to ease in the next year despite continued supply-chain disruptions and labor shortages.

This belief causes most, 83% to focus their business strategy on growth according to PwC’s recent Managing Business Risks in 2022 Pulse Survey. 

But adjusting to higher costs, U.S. manufacturers  taking a few steps:

• 77% are raising costs for products and services
• 64% are expanding permanent remote work optionsining
• 57% are streamlining their product portfolios

Other findings of the survey found that 73% of IP leaders cite rising production costs (e.g., wages, materials, energy, inventory) as posing a “moderate or serious” risk to their business

Cybersecurity continues to be a major issue with 75% of IP leaders expect more frequent and/or broader cyber attacks over the next year, with most (82%) saying they are taking action or monitoring closely policy around cybersecurity, privacy and data protection.

While  77% of sector leaders say supply chain woes pose a serious risk to their business; yet, nearly the same percentage 75% report that they are improving supply chain resiliency.

And the talent shortage continues with  77% of IP executives agree that problems surrounding talent acquisition and retention pose risks to their business

The full report is here, and the industrial products sector findings are here.