According to Travelers IndustryEdge survey, nearly 75 percent of manufacturing leaders reported having already expanded their product or service offerings over the past year or plan to in 2013. The survey encompassed the breadth of the manufacturing including surveying professionals who are general managers, directors, owners, and partners from metals, food, and plastics manufacturers.
“All of this growth presents tremendous opportunities – and a host of new hazards throughout the complex, interconnected global supply chain,” said Jim Mandes, Manufacturing Industry Manager, Travelers Commercial Accounts. “Hazards may include less skilled workers, fewer suppliers to choose from and an increased potential for business interruptions.”
Manufacturers were also found to consider hiring qualified employees a high priority and 88 percent of manufacturers reported having already hired employees this year or having plans to hire new employees throughout 2013. Additionally, 71 percent of companies are conducting sales outside of the U.S. and 67 percent receive at least 25 percent of their supplies from one supplier.
Mandes said, “If a manufacturer is relying on a small number of suppliers, and those suppliers are faced with a temporary situation where they are unable to provide the materials – the manufacturer can suffer a significant decline in revenues. As new risks emerge for manufacturers, insurers like Travelers believe that the new landscape requires a more evolved view of global businesses.”