In 2021, the phrase “supply chain” continued to make mainstream news just as it had done at the outset of the pandemic. Consumers have come to associate the phrase with the absence of their favorite brands from store shelves. However, for the U.S. manufacturing industry, including the deep drawn stamping industry, the supply chain challenges of the past two years have deeper implications and signal shifts that are likely to carry over into 2022 and beyond.
2022 Forecast of Manufacturing Trends for Deep Drawn Stamping
To understand how the deep-drawn stamping industry is changing, it’s first important to understand the crucial factors affecting the entire U.S. manufacturing sector. Of course, the broader industry has been beset with supply chain challenges, spanning all business and manufacturing sectors. Decades of manufacturing offshore, pandemic-driven labor shortages, and significant inflation have wreaked havoc on traditional fulfillment times.
Recently, businesses have placed larger orders for metal stamped parts to stock up and avoid shortages. However, doing so lengthens already extended lead times. A progressive die run previously might have required 10 to 18 weeks of lead time, the combination of larger orders and transportation difficulties lengthens production time substantially.
Raw material shortages have also been a significant issue, resulting in increased prices, reduced profit margins, and longer lead times. To receive their orders on schedule, clients now have to be flexible about their metal choice.
The Benefits of Reshoring
However, the current supply chain woes are forcing all firms to rethink how they source products from start to finish. Of course, reshoring is an effective solution. Leveraging domestic supply chains, U.S. manufacturers benefit from lower transportation costs, as well as faster supply and distribution times. Further, they will no longer be dependent on complex and strained international supply chains and be insulated from protectionist policies on either side of the Atlantic.
Businesses can further benefit by working with all-in-one manufacturers, which distinguish themselves by handling even the most complex jobs, all under one roof. By working with all-in-one manufacturers, businesses can reduce the number of suppliers they work with, saving them time and money while mitigating the risk of mistakes when coordinating with two or more vendors on a single component’s production.
Most Impacted Industries and Finished Goods
The current supply chain challenges have affected every sector in some way. However, several industries, which have long been more reliant on international logistics than others, play prominent roles in our everyday lives and may face continued supply and distribution problems:
Airplanes are sophisticated vehicles with parts sourced from multiple countries. The rising cost of metals and labor costs have increased production costs, while COVID outbreaks in many countries where critical components are manufactured have increased production times.
To treat the massive influx of new patients since the pandemic’s onset, providers have needed an immense amount of new equipment. Among other equipment needs, industry supply companies have required greater quantities of stamped metal parts for use in components such as:
- Brain Stimulation Devices
- Battery Components
- Capacitor Components
More goods, from refrigerators to light bulbs, use semiconductors these days. U.S. consumers would not feel the effects of the chip shortage so acutely if the production process was not so heavily reliant on international supply chains. And while national policies that would incentivize reshoring also remain bottlenecked, demand for the services of manufacturers at every step of the semiconductor production cycle, from deep-drawn metal stamping to lithography, remains high.
Many businesses have been replacing processes such as die-casting and forging with more efficient ones such as metal stamping, to take advantage of higher production volumes and lower production costs.
Hudson Technologies’ 2022 Strategy
In 2022 and the foreseeable future, U.S. businesses in need of stamped metal parts will need domestic all-in-one manufacturing suppliers who can complete and deliver high-quality projects on schedule.
Over our eight decades in business, Hudson Technologies has navigated periods of regional and national economic uncertainty, offshoring, and technological advancement. We’ve thrived by keeping our finger on the pulse of our customers’ needs and pain points. We’ve diversified our raw goods suppliers during this challenging time to ensure we can fulfill customers’ orders. We’ve examined and remediated our production processes for inefficiencies that may delay production times. And we’ve worked with new customers seeking domestic suppliers to help them establish more efficient supply chains.
We remain dedicated to manufacturing stamped metal parts of the highest quality and providing excellent customer service. Explore our capabilities, then contact us today to discuss your stamping needs.