Manufacturers to slash supply costs

Almost three-quarters of U.S. manufacturers this year aim to aggressively cut supply chain costs in a bid to boost profitability, with over a fifth planning to raise e-commerce activity. These are the findings of a new report by the US based National Association of Manufacturers (NAM​). According to the report, 72 per cent of the 327 small, medium and large U.S. manufacturers have looked into drastically reducing costs in their supply chain. Perhaps surprisingly only twenty-two per cent expect to increase their use of e-commerce to raise client relationships and efficiency. Released in Chicago during National Manufacturing Week - the largest annual manufacturing trade show in North America - the NAM survey was conducted between February 15 and 22. Reflecting the current nervous economic feeling in the US 44 per cent of those surveyed think the first half of 2001 will see negative (recessionary) growth, while 40 percent believe manufacturing will register less than 2 per cent growth in Q1 and Q2. NAM President Jerry Jasinowski commented "the survey also tells us that manufacturers are not as e-savvy as they should be. Less than one-quarter (24per cent) cite e-commerce as one of their top three business priorities for this year. But manufacturers plan to step up their activity on the e-commerce front."​ While just 35 per cent sell over the Internet today, 50 per cent expect to be selling online one year from today, the report discovered. Furthermore while 54 per centmake company purchases over the Internet today, 65 per cent expect to be purchasing online one year from now. Source: Line56