Electronics Supply
Heat disruptions hit half of electronics manufacturers
Extreme heat halts supplier deliveries worldwide
Productivity and throughput suffer across regions
Stock video by Oleg_Pikhalenok
Heat-Related Supply Chain Disruptions Hit Electronics Manufacturers Worldwide
Electronics producers across the globe experienced significant supply chain interruptions tied to extreme heat this year, and supplier delivery holdups were identified as the most serious consequences, according to a trade group survey made public Tuesday and covered by Supply Chain Dive.
Roughly half of the manufacturers polled by the Global Electronics Association indicated that supplier fulfillment suffered the greatest impact, with 50% of manufacturers across North America, Europe and Asia Pacific reporting disruptions.
Respondents were not asked to detail the precise nature of supplier delays. Chief Economist Shawn DuBravac told Supply Chain Dive that the reasons were probably diverse, citing possible labor problems, constraints at supplier factories and bottlenecks in freight and warehousing. He suggested the delays likely arose from a mix of factors grouped under the wider heading of supplier delays.
Two-fifths of manufacturers worldwide reported some kind of heat-related supply chain disruption. In North America, minor or no disruptions were the most frequent results, at 20% and 57% of respondents respectively, while moderate and major interruptions were each reported by 6%.
Over four-fifths of manufacturers globally that faced heat-related disruptions reported adverse effects on productivity and operational throughput, the survey found. In North America, 13% reported major impacts and 50% reported moderate impacts.
DuBravac characterized a moderate impact as something requiring attention and affecting throughput and production schedules.
North American companies that had not dealt with heat-related disruptions still worried about possible problems. The most frequently cited anticipated bottlenecks were operating constraints, such as cooling limits, and power reliability issues, such as curtailments, at 29% each, according to the survey.
Other possible disruptions included transportation delays, unplanned equipment downtime and supplier delivery delays, cited by 17% of North American firms. Single-digit percentages pointed to customer demand disruptions, missed shifts, reduced staffing and product quality defects.
Over half of manufacturers globally said their supply chains faced exposure to severe heat-related disruptions. In North America, 47% reported exposure, with <a href="https://bitcomme.com/more-than-a-rivalry-the-battle-of-the-boot-brings-plaquemines-parish-together/" title="More than a rivalry, the Battle of the Boot brings Plaquemines Parish together”>more than 40% somewhat or slightly exposed and 6% highly exposed.
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