What’s Causing American Supply Chain Problems?

Whether you’re in the steering wheel column industry or not, you’ve no doubt noticed that people, in general, are having problems getting what they need. More specifically, goods are experiencing problems moving down their respective supply chains, and companies are struggling to adjust. This isn’t just an issue in the Americas, but the entire globe.

But what caused this supply chain disruption in the first place—and what can be done about it? BSM North America, your local Burnsville provider of custom steering columns, has a few of the answers below.

COVID 19 Started the Crisis

Though many factors contributed and continue to contribute to this issue, its origins can, in some part, be traced back to the pandemic—or more specifically, working policies put in place for safety. As ABC News puts it, “the lingering effects of COVID-19 mitigation strategies essentially reduced the production of goods and services, and the supply-chain shortages now happening are the result of struggles to return to pre-pandemic levels.”

In plainer terms: dealing with the pandemic also meant that production necessarily decreased. As the economy shifts back into its pre-pandemic state, supply chains are struggling to catch up.

Air and Ocean Freight Are Experiencing Problems

And they’re much worse than the time a single ship got stuck in the Suez Canal. Natural disasters have, for one, made for a tough 2021, meaning that shipping delays have become increasingly more common. Ocean freight costs are rising, and airmail is becoming a more viable option after years of massively outpricing its competition. This, in turn, places additional demands on air freight companies, leading to delays as they adjust.

Inflation and increasing fuel prices may also place strain on these systems. CNBC predicts fuel costs to rise in 2022; these issues don’t seem to be going anywhere anytime soon.

What Can Be Done

If you’re looking to stay afloat when freight companies are flagging, the answers may be simple: Localized manufacturing and near sourcing. You can learn more about them in our off-road steering column blog “Manufacturing Trends: The Rise of Localized Manufacturing and Near Sourcing.” In short, they both involve thinking more local, both in business approach and geographic distance, which decrease the extensiveness of the supply chain and circumnavigate this global problem.

BSM North America: Localized American Steering Column Manufacturing

We’d be proud to be a part of your company’s new local business approach. Reach our Burnsville office today at 952-890-8146 to learn more about all of our steering column options.