Manufacturers up supplier numbers

2 December 2011

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2 December 2011 | Adam Leach

More than a third of manufacturing companies in the US and Europe have increased their supply base in the third quarter, according to a report from manufacturing consultancy MFG.

The quarterly manufacturers survey, by, found that 90 per cent of respondents have either increased vendors or left supplier numbers unchanged in the last three months. In all, 43 per cent increased and 47 per cent kept numbers the same.

The survey also found that ‘reshoring’, or bringing  production or switching suppliers back to company’s home country, increased with  19 per cent up from 15 per cent in the previous quarter. However, the authors  found: “reshoring or repatriation of production is clearly noticeable, but hardly a trend to offset off-shored production.”

Key threats to the supply chain identified by respondents included the availability of competent suppliers (46 per cent), logistics and shipping costs (45 per cent), product quality compliance (40 per cent) and fuel/oil prices (31 per cent).

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