Many people are changing their buying habits.
That includes manufacturers that order raw goods. They said they are over-ordering, trying to keep up with the strong demand for goods and products, which adds to shortages. They are in a vicious cycle — a cycle they are working to break.
U.S. Rep. John Katko, Manufacturers of Central New York and local company leaders met Monday to discuss and share solutions to the problem. And they are thinking long term.
What You Need To Know
- Supply shortages are due to labor issues, raw goods outsourced from overseas and transportation issues
- Katko is proposing incentives for innovation and technology improvements
- Companies admit they are over-ordering raw goods to try to keep up with orders
Supply chain issues extend much further than shelves being bare for holiday shopping. It’s crippling New York companies like Syracuse-based Morse Manufacturing, which makes mobile drums handlers.
“In the United States, we’re the only manufacturer of a product like that," said Ralph Phillips, Morse Manufacturing marketing manager.
Employees said orders can be on hold for weeks as they wait for raw materials.
“We’re frustrated with it but we’re very happy to keep our jobs," said Morse Manufacturing assembler Dan Mulpagano.
Nate Andrews, president of the almost 100-year-old Morse Manufacturing, is worried about the issue impacting his company and employees.
“Potentially, if we can’t get products in the door, we’re sending our employees home," Andrews said.
Andrews and other local stakeholders met with Katko Monday to rethink the supply chain process.
“We’re vulnerable as a country because of our supply chain," Katko said. "We have our eggs in baskets that are not in the U.S. Can we continue to have a great reliance on China as a trading partner? Should we? If we have these supply chain issues now, and they’re not going to go away, don’t we have to think about what we have to do to fix it?"
Some ways they discussed to fix supply chain issues include incentives for innovations.
“For example, if a company decides to invest in technology and innovation here in the U.S., to make sure that there is a tax incentive to do that for example," Katko said. "Don’t raise taxes. Do not make it more difficult to come back home."
These are plans they hope solve supply issues far beyond the holidays.
“It’s an inconvenience not having stuff on the store shelves and it’s bad for our economy, but that’s a short-term example of a longer term problem," Katko said.
The plans for incentivizing technology and innovation for U.S. companies to improve supply issues will take months, they say.