A new report found that the number of supply chain disruptions increased by 3% in the first half of 2023 compared to the same period in 2022. However, the report also found that the rate of increase is slowing, indicating that the supply chain is stabilising.
As reported by Supply Chain Brain, labour disruptions were one of the biggest drivers of supply chain disruptions in the first half of 2023, increasing by 136% compared to the same period in 2022. This includes strikes, layoffs, and labour protests.
Factory fires were among the leading cause of supply chain disruptions in the first half of 2023, with 1,642 instances reported. For instance, the fire in Wuxi, China, in January 2023, had serious supply consequences for several electronics manufacturers, including Vishay and Infineon.
The healthcare, high-tech, automotive, aerospace, and food & beverage industries were the most impacted by supply chain disruptions in the first half of 2023.
Manufacturing disturbances, such as shutdowns, production halts, warnings/citations and labour accidents, also grew as well, increasing by 30% year-on-year. Product recalls were also up 66% compared to the first half of 2022.
Financial disruptions also increased drastically through the first six months of this year, with bankruptcies up 196% and profit warnings up 300% compared to the same period in 2022. Interruptions caused by corporate restructuring also increased by 125% year-on-year.
The report showed the rate of disruption is slowing, which is positive news for businesses, but they should still be prepared for disruptions, as they can still occur.
To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.
For more help with looking at supply chain options, contact Astute Electronics