2022 Supply Chain Forecast

Trendlines Look Encouraging for Overcoming Supply Chain Struggles

Supply chain worries continue to plague manufacturing and B2B companies. But the 2022 supply chain forecast looks cautiously optimistic from where we stand.

What Experts Are Saying:

We now have emerging evidence that many of the past year’s issues are temporary. Here are the best predictions out there right now for what to expect in 2022.

• Shipping costs were starting to fall by mid-November
• US manufacturing output rose in October to a 2.5-year high
• Output remained stable in November

Why Things Are Actually Better Than They Seem

The events of the past year revealed the mismatch between the idealized lean, “just-in-time” model and the modern supply chain.

Still, experts point out that things are not as bad as some headlines would suggest.

Here’s why:

• A lot of the supply chain issues in 2021 had more to do with demand than supply
• Critical sectors in the supply chain coped better than expected – and better than reported
• Capital investments being made now will show up in the coming months and years
• Globalization will lead to faster recovery from supply chain disruptions than aggressive homeshoring

Unclear When the Logjam Will Peak (or if it already has)

The average wait time at the US Port of Los Angeles rose from 17 days in November to 20 days in December. Is this the peak? Forecasts for import volumes appear to be falling as we head into January. Of course, those are estimates.

It appears that gradual easing of supply chain woes is expected in 2022. Let’s hope it comes sooner rather than later!

What are you seeing happening with the supply chain? Get in touch with us on LinkedIn or Tweet us. We’re always happy to talk!

—parin

Managing Partner

Photo credit: Photo by CHUTTERSNAP on Unsplash