The manufacturing industry is a vital part of the North American economy. In the United States, manufacturing accounts for $2.3 trillion in GDP, employs 12 million people and supports hundreds of local economies. Meanwhile, total revenue for Canadian manufacturing reached $787.3 billion in 2021 – an increase of $108.9 billion compared to 2020.
But the manufacturing industry isn’t immune to challenges. Fueled by the economic downturn, changes in consumer demand and supply chain bottlenecks will impact production, growth and profitability. So, what’s your plan of attack if your business faces cash flow problems? Are you relying on supply chain financing to shore up your operations? Supply chain financing is a great way to keep your business running in troubled economic times.
Want to restore brand confidence in the age of cancel culture? Prioritize ethical sourcing and supplier due diligence.
Nearly half (42%) of the respondents admitted they would still work with an international supplier that has been found to be on a sanctions list or involved in slave labor, corruption, bribery or fraud.
Is supply chain financing making manufacturers more or less resilient?
Our study found that 69% of manufacturing companies have used supply chain financing in the last 12 months and another 66% expect to use it in the next 6 to 12 months. These findings signal that manufacturing companies are using multiple lines of credit to stay afloat through the year. So, it’s not just nice to have; it’s a necessity that manufacturing businesses likely can’t survive without.
Eradicating supply chain fraud is more pressing than fixing production and shipping problems.
Four in 10 manufacturing companies are concerned about being scammed by someone imitating a director of a legitimate company or sending money to a fake bank account. But only 17% are worried about receiving damaged or faulty goods, while just 16% are concerned about shipment delays.
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