According to a recent survey conducted by the American Chemistry Council (ACC), many companies say that complications due to transportation and supply chains are negatively impacting their businesses. In fact, one of the key findings of this survey showed that 93 percent of chemical manufacturing businesses are dealing with these disruptions. Figuring out how supply chain issues continue to impact chemical manufacturing is the vital first step in figuring out how to solve these concerns.
The ACC Survey
A large focus of the ACC survey was that the council could inquire about how things have changed between pre-pandemic times and now. The ACC surveyed several chemical manufacturers four times since late 2021 to gain a better understanding of how supply chains changed when delivering by boat, truck, and train. With over 90 percent of manufacturers discussing complications, it’s important to analyze the specific problems.
Two of the biggest ways supply chain issues impact chemical manufacturing are transportation costs and transportation delays. According to the ACC survey, 86 percent of chemical manufacturing businesses said they had to modify operations due to transportation disruptions and delays in the second half of 2022.
Many of the disruptions in the supply chain resulted in higher transportation costs, and 62 percent of chemical manufacturers claim to have seen an increase in supply chain costs throughout the end of 2022. Throughout all last year, 36 percent of companies surveyed mentioned customers canceling orders or shipments out of concern that they wouldn’t arrive on time. Nearly everyone involved, from the suppliers, manufacturers, and customers, is experiencing the negative impacts of not receiving what they need through the supply chain.
The chemicals industry is an important one, and nearly 96 percent of manufactured goods are part of the supply chain. Many of the proposed solutions involve changing policies in the United States, such as increasing highway gross vehicle weight limits to enable truck drivers to transport more materials in fewer trips. Other companies believe implementing the railway industry’s minimum service standards will yield positive results.
Capital Resin Corporation relies on a steady supply chain so that we can continue to design, produce, and implement chemical products for our clients. We’re well-trained in the field of chemical engineering and happy to handle the scientific details. For more information on the chemical process or to learn more about what services we offer, please do not hesitate to contact us anytime, and a member of our staff will be happy to assist you.