As we round out 2021 and enter the tumultuous winter months here in the US, let us reflect. While many business owners are more than ready to move forward, there are several ways COVID-19 continues to challenge the marketplace and the economy.
About Manufacturing Adaptations
New shipping demands are being expected across most industries. There is an increased need for medical supplies and a focus on improvement in sanitization in manufacturing and industrialized buildings. However, this changeover is also costing manufacturers time and energy in providing the necessary items needed to meet the new demands incurred by COVID-19. There are also supply fluctuations resulting from the pandemic as we try to forecast demand for the upcoming year in manufacturing.
New Manufacturing Demands
Updated new safety protocols are being addressed at annual meetings from coast to coast. Industrial manufacturers, transportation providers, and construction companies are still catching up with the new COVID-19 related changeovers. This includes challenges from supply fluctuations from manufacturing giants like Industrial Polymers and Chemicals (IPAC).
IPAC had to switch over to the manufacturing of personal protective equipment including gowns and hand sanitizer to meet customer demand. Previously, IPAC was in production mode for fiberglass reinforcements produced for the abrasives industries.
“We’re still a major manufacturing supplier for the abrasives industry, and those are still our core businesses. But PPE is an important part of it. It’s small, but we feel it’s a growing part of the business,” according to IPAC Chief Technical Officer Tom Kennedy.
Medical Industry Supply Fluctuations
The supply chain has experienced fluctuating demand during the pandemic for a number of reasons. Based on what industry a business is in, we see how some markets were nearly shut down due to the loss of business, while other markets boomed, including medical testing and supplies.
For example, LVMH over in France, manufacturers have needed to switch over from manufacturing fragrances and hair gels in order to produce medical grade hand sanitizer. This is both to keep the supplies in stock, as well as to maintain a steady stream of employment opportunities for workers.
The demand for manufacturing has moved beyond the predictions of typical supply chains. As communities strive to recover from quarantines and lockdowns, demand has flipped. Certain items, especially in the medical industry and home health care, have skyrocketed in demand.
Yet small businesses are suffering negative effects from COVID-19 and those in the travel or business apparel industries are in the thick of this. Fortunately, the forecast is improving and supply lines are opening up with trucking carriers getting inventory supply to warehouses for the upcoming holiday season.
See More Supply Chain Finance Solutions
Manufacturers are also focusing on the financial impact at this time. It is the top concern for US manufacturers, as they address operations, capital, and liquidity. If you are in need of supply chain finance solutions, let ENGS Capital solve them today.