Electronics manufacturers worldwide reported extreme heat-related supply chain disruptions this year, with supplier delivery delays cited as the most severe impacts, an industry trade association survey released Tuesday found.
Almost half of manufacturers surveyed by the Global Electronics Association said supplier fulfillment was most affected, with 50% of manufacturers in North America, Europe and Asia Pacific reporting disruptions.
The survey did not ask for the exact types of supplier delays. However, Chief Economist Shawn DuBravac told Supply Chain Dive there were likely multiple causes, such as labor issues, supplier factory constraints and freight and warehouse bottlenecks.
“My sense is that it was probably an assortment of different things that would fall under that broader category of supplier delays,” DuBravac said.
Two-fifths of manufacturers globally reported some type of heat-related supply chain disruption. In North America, minor or no disruptions were most common, at 20% and 57% of respondents, respectively, while moderate and major interruptions were each cited by 6%.
North American electronic supply chains face extreme heat-related impacts
More than four-fifths of manufacturers worldwide who experienced heat-related disruptions reported negative impacts on productivity and operational throughput, per the survey. In North America, 13% reported major impacts, and 50% reported moderate impacts.
“To me, a moderate impact would be something that has to be addressed, something that impacted throughput, that impacted production schedules,” DuBravac said.
North American firms that had not experienced heat-related disruptions are still anxious about potential issues. The most cited anticipated bottlenecks were operating constraints, including cooling limits, and power reliability issues, including curtailments, at 29% each, the survey found.
Other potential disruptions included transportation delays, unplanned equipment downtime and supplier delivery delays, with 17% of North American firms citing these. Single-digit percentages cited customer demand disruptions, missed shifts, reduced staffing and product quality defects.
More than half of manufacturers globally said their supply chains were exposed to severe heat-related disruptions. In North America, 47% reported exposure, with more than 40% somewhat or slightly exposed and 6% highly exposed.
Looking ahead, more than two-thirds of manufacturers worldwide expected extreme heat-driven interruptions in productivity or operational throughput in the coming years, the survey found. In North America, 14% expected major or moderate impacts, while 32% anticipated minor impacts.
Overall, the survey showed that contingency planning for heat-related supply chain disruptions was essential, DuBravac said. And the fall, when temperatures are cooling down, is the best time to start.
“If I were advising a manufacturer, I would tell them now is the perfect time to run scenario plans on what happens to your operations if you had a week of 110-degree weather, if you had two weeks of 110-degree weather, if you had three weeks of 110-degree weather,” DuBravac said, adding, “You want to have a clear playbook that you can turn to, rather than having to write the rules while you're in the midst of it.”
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