The Institute for Supply Management on Monday reports it’s taking an average 100 days to receive production materials, the longest in records dating back to 1987. For capital expenditures, the average commitment time rose to a whopping 173 days, matching the highest on record.
In addition to transportation and shipping delays, the inability to hire is complicating matters for producers. Some 34% of the ISM survey’s respondents who are hiring indicated difficulty filling vacancies, up from 28% a month earlier.
Turnover rates remain elevated as well, illustrating severe tightness in the job market. The share of purchasing managers who said employment actually declined in April was the highest in seven months.https://www.bloomberg.com/news/newsletters/2022-05-03/supply-chain-latest-labor-long-lead-times-a-one-two-punch-for-u-s-factories?cmpid=BBD050322_TRADE&utm_medium=email&utm_source=newsletter&utm_term=220503&utm_campaign=trade