Virtually every industry is feeling the effects of the global supply chain crisis. And while you might not hear as much about it on the news in recent months, it’s still top of mind for distributors and companies across industries.
Many developers are facing price pressures, stock uncertainties, logistics, and intense competition to provide their products and services to clients. Multiple factors are contributing to the problem, and companies are doing their best to fix it. But for some, resolving the issue means revamping their entire business model.
Our North American Made and Manufactured Products
To combat these problems and reduce long lead times, we’ve chosen to design, make, and manufacture all Interceptor products in North America. While our overhead may be higher initially, and it's certainly not the standard in the industry, we've chosen to go this route to make a difference for our customers and, hopefully, the industry as a whole.
We can circumvent supply chain issues through our automated system, which alerts us whenever our manufacturer’s stock levels run low (sometimes every eight minutes). This system tells us when new parts come in and allows us to purchase the ones we use the most automatically. As part of our predictive strategy, we proactively stock components before they run low through our automated system, as well as custom orders to stock for special projects and new designs. Because our products are fully designed and manufactured in the US and Canada, the Interceptor product line doesn’t face the same delays and challenges as other similar companies sourcing products overseas. Another preventative measure we implement is; Design for Manufacture. In design, we fully evaluate alternates that are easily replaced without loss or interference. What this means is, that we have multiple options for solutions rather than finding that manufacturing halts until parts become available again.
Here are some of the ways issues surrounding the supply chain are still proving difficult for businesses and how investing in modular solutions made in North America can circumvent these challenges.
Material Shortages and Logistical Challenges
When shipping and production temporarily halted in 2020, some manufacturers didn’t realize how long it would take to get production back to full capacity. The ripple effect of tight supply chain conditions makes it difficult to get any type of equipment or parts.
The aftermath of COVID-19 presented raw materials shortages and significant logistical challenges for companies, like transportation delays and significant difficulties in getting shipments from countries outside of the US. When you add inflation to long wait times and increased leads on product development, many companies are faced with disgruntled customers looking for alternatives.
Stifled Supply, Growing Demand
In an increasingly competitive, digital landscape, customers want an increased number of products on an expedited timeline. This is in direct contrast with the current supply chain crisis companies face. Companies need to build realistic contracts and set expectations with their customers, but too often, customers are frustrated with long wait times and want to take their business elsewhere.
In the energy sector, these supply chain issues could negatively impact consumer power, which is expected to hit an all-time high this year. With record-breaking heat waves and droughts across the US, energy companies want to know that they can rely on their equipment or purchase updated solutions to help alleviate some of the strain on electric grids. But with long wait times for modular solutions, they are left scrambling to find other options.
These issues could hamper companies’ ability to restore power during outages, which poses a severe threat to consumers during unprecedented heat waves. Supply constraints for equipment can also interfere with rebuilding resources for natural gas or helping find hydropower solutions for cities experiencing extreme drought.
Supply chain issues continue to delay projects that can help develop renewable energy projects, which would offer a timely solution to today’s energy challenges. In addition, if the climate continues down the current trajectory, equipment also needs to survive extended periods of extreme heat, cold, and storms. Utility operators for some organizations are already conserving inventory to prepare for upcoming extreme weather conditions during hurricane season.
The Importance of North America-Made Modular Solutions for US Businesses
In times of supply shortages and global crises, companies need modular solutions with short development periods. Many companies are pushing their lead times to 52 weeks, which doesn’t mean the product arrives on your doorstep in that time. Sometimes, this is an indicator of when they will be able to inform you about the status of your product’s development and shipment. This is unacceptable considering the challenges facing the energy sector today.
Companies that need electronic components and modular solutions are seeing a massive uptick in companies saying they must put money down to reserve parts. Still, these companies won’t tell clients when they will receive the parts ordered. This means companies must use significant capital with no ROI forecast or ability to accurately schedule future workload.
Any sector that uses electronic components needs to understand that when things come back online, the companies they order from may stop making certain products that are necessary but not as lucrative or specialized parts that cannot be made and manufactured in large quantities. They will only make viable products that will sell quickly due to limited resources and a need for cash. Any company in energy, manufacturing, robotics, the automotive industry, and more will be impacted by this.
The pressures industries are facing due to the supply chain crisis are not going to dissolve in the near future. If your company needs robust modular solutions, consider partnering with the Interceptor team to get the solutions you need when you need them. Contact us to find out how we can help your business.
