"Manufacturers are stacking up unfinished goods on factory floors and parking incomplete vehicles in airport parking lots while waiting for missing parts, made scarce by supply-chain problems.
Shortages of mechanical parts, commodity materials and electronic components containing semiconductor chips have been disrupting manufacturing across several industries for months.
Companies determined to keep factories open are trying to work around shortages by producing what they can, at the same time rising customer demand has cleaned out store shelves, dealer showrooms and distribution centers. As a result, manufacturers are amassing big inventories of unsold or incomplete products such as truck wheels and farm tractors. Companies that are used to filling orders quickly now have bulging backlogs of orders, waiting for scarce parts or green lights from customers willing to take deliveries.
Executives expect the shortages and delivery bottlenecks, exacerbated by overwhelmed transportation networks and a lack of workers, to stretch into the fall. The delays are costing manufacturers sales and pushing some companies to revamp the way they put together their products, executives said.
Supplies of materials and consumer goods were depleted in spring 2020, when some businesses shut down to contain the spread of the Covid-19. Since then, U.S. consumers embarked on a spending spree for homes, recreational vehicles, appliances, cars and other items. That challenged manufacturers and commodity suppliers to keep up with rising demand. The backlogs of unfinished products are starting to take a toll on some companies, even as they report higher sales and profits." [1]
1. Business News: Products Wait Unfinished for Parts
Tita, Bob. Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 31 Aug 2021: B.3.
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