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Supply Chain Disruptions Got You Down? You Must Be a Manufacturer

US Census Bureau Supplychains-fig.-1-061721.jpg
Manufacturers are hit hard by supply chain disruption. Small businesses are particularly slammed.

According to September’s industrial production report from the Federal Reserve, there’s been a 7% month-over-month drop. That follows a lightly less severe drop in August. Output at the nation’s factories, mines and utilities are experiencing the biggest drop since the pandemic-caused crash in early 2020.

Supply chain disruptions are the core of the problem. The Census Bureau’s Small Business Pulse Survey reveals delays from domestic and foreign suppliers. The Census Bureau’s Small Business Pulse Survey (SBPS), designed to measure how COVID-19 is affecting small businesses, captures the extent of some of these business disruptions.

The survey shows that 38.8% of US small-business respondents reported domestic supplier delays in recent weeks. Nearly 40% of US small-business respondents reported domestic supplier delays in September.

The sectors hit hardest include:

Manufacturing, 64.6%.

Retail, 59.8%.

Construction, 58.5%.

Accommodation and Food Services, 51.4%.

 A 39% slice of manufacturing small business respondents said they would need to identify new supply chain options within the next six months. Delivery and shipping delays increased: 22.7% of respondents indicated delivery and shipping delays in September.

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