Persistent supply chain issues have a profound impact on chemical manufacturers, new investigation finds

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WASHINGTON, January 10, 2022 / PRNewswire / – U.S. chemical manufacturers have reported that persistent and, in some cases, worsening supply chain problems are negatively impacting their operations. According to the survey results released by the American Chemistry Council (ACC), the impacts of supply chain disruptions and transportation constraints for many companies are far reaching and have occurred in all regions of the world. United States.

The survey was conducted to better understand the supply chain and scale transportation issues faced by ACC member companies and their impact on operations. Highlights of the survey include the following key findings:

  • Almost all businesses (98%) reported making changes to their operations due to supply chain / transportation issues.
  • Two-thirds reported loss of production, and almost all reported shipping delays (94%), raw material shortages (94%), and increased transportation costs (93%).
  • Over the past year, more than a third of businesses have known or reported force majeure due to supply chain / freight transportation issues.
  • During the same period, almost all (93%) companies reported additional costs of several million dollars. Estimates ranged from $ 100,000 at $ 250 million, with more than a third of companies reporting costs greater than $ 20 million.

Supply chain issues are a critical issue for ACC and its members, as chemical shipments represent a significant portion of the overall total shipments for marine, road and rail transportation. The stakes are only expected to rise as ACC economists predict that chemical shipments and industry transportation needs will increase this year and into the future.

“Our industry forecast for 2022 calls for significant growth in chemical production and shipments, increasing the urgency of unraveling ongoing supply chain issues,” said Martha moore, Chief Economist of ACC. “Our member companies have made it clear that problems prevalent in all modes of transport create an undesirable and highly disruptive environment for chemical manufacturers.”

Several initiatives President Biden and Congress have put in place over the past year are helping move more goods and address supply chain constraints for chemical manufacturers. These initiatives include extended hours of service and additional funds for improved port facilities and recruiting programs to help get more truck drivers on the road.

As part of its efforts to rebuild America’s infrastructure, the federal government must place more emphasis on solving freight transportation problems. CCA has joined with several other industry groups in advancing additional policies aimed at addressing these issues by helping to promote greater competition among freight carriers and by increasing shipping capacity by truck and by sea.

More specifically, the Council asks Congress to adopt the Maritime Transport Reform Act 2021, urging Congress to pass legislation to improve trucking capacity by increasing gross vehicle weight (GVW) on federal highways and pushing the Surface Transportation Board to allow greater access to competitive and reliable freight rail service.

“The supply chain issues affecting our member companies simply did not go away by the stroke of midnight on New Years Eve. Unfortunately, they will continue until 2022,” said Chris Jahn, President and CEO of ACC. “President Biden and Congress have made modest progress, but now is not the time to give up. To put these systemic supply chain issues behind us, we must continue to move forward on additional policy reforms that will release the full capacity of the entire freight transport network. “

American Board of Chemistry

The American Chemistry Council (ACC) represents the leading companies engaged in the multi-billion dollar chemicals industry. ACC members apply the science of chemistry to create innovative products, technologies and services that make people’s lives better, healthier and safer. ACC is committed to improving environmental, health, safety and security performance through Responsible Care®; common sense advocacy on major public policy issues; and health and environmental research and product testing. ACC members and chemical companies are among the largest investors in research and development and advance products, processes and technologies to combat climate change, improve air quality and water and move towards a more sustainable circular economy.

SOURCE American Chemistry Council

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