Manufacturing SMEs are Among the Hardest Hit by the Supply Chain Problems
All across the world over the last several months, supply chain problems have hit many industries hard. Some of the most famous examples of this include Chick-Fil-A being short on sauces and Wingstop running low on chicken wings. But those are just a couple of examples. What’s not making news are the thousands of SMEs that are not receiving their supplies.
SMEs stand for small and mid-sized enterprises. There are over 30 million SMEs in the US, making up over 99% of all US businesses. SMEs also employ almost 50% of America’s total workforce.
Small to mid-sized enterprises are the ones who are hit the hardest by the supply chain issues, and most of all, manufacturing businesses. Studies have shown that nearly 50% of manufacturing SMEs will have to find new supply chain options within the next six months and many are having difficulties finding alternative suppliers.
Why is this happening to SMEs?
The supply chain is affecting most industries and businesses that rely on receiving supplies from outside sources. Even the big businesses are being affected by this, but, unlike small businesses, large corporations have more means to get around these issues, including using air freight and seemingly unlimited capital to make up for it.
SMEs, especially small manufacturing businesses do not have this option and are getting pushed farther and farther back on the priority list.
This isn’t just happening in the US either. All across the EU and UK, small to mid-sized businesses are struggling to get their supplies.
The supply shortages combined with labor shortages, inflation, and the pandemic have all taken a toll on these businesses.
The US Federal Government is trying to identify and solve supply chain issues. The Federal Trade Commission has ordered major wholesale and retail corporations to share their supply chain data. A few of those corporations include Amazon, Proctor & Gamble, and Walmart. The FTC’s goal is to dissect the data to find the problems and hopefully the solution to the supply chain crisis.
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