How Global Supply Chain Disruption Affected the Rubber Industry?
As distressing a healthcare crisis as it was, COVID-19 single-handedly brought the global supply chain to its knees. The rubber industry was adversely affected by COVID-19. The condition of the industry has substantially improved because of its issues being resolved and the return to normalcy. The rubber industry faced numerous challenges, the most notable ones being labor shortages, raw material shortages, and polymer allocations. These issues are being attended to produce quality rubber diaphragms, gaskets, and seals. Here is an overview of the obstacles the rubber industry faces.
Labor Shortages
A survey conducted by the Association for Rubber Products Manufacturers (ARPM) had 91% of respondents say that raw material unavailability is responsible for the rubber industry workers being out of work. When the survey was conducted, only 30% of the respondents were staffed. Labor shortages are responsible for the current rise in wages. A large chunk of manufacturers has increased the wages of the workers. Due to the raw material being in short supply, labor cost has increased.
Raw Material Shortages
Manufacturing rubber anywhere between 10 to 20 different ingredients. Even if one of these ingredients is in short supply, the manufacturing operation can be disrupted or halted altogether.
Polymer allocations of silicone(SL) and fluorocarbon polymers (FKM) in rubber are common now. Polymer allocations show no signs of improvement and this could continue for quite some time. The manufacturers will now have to operate with half the amount of polymer every month which severely affects production and shipping.
Another troubling matter that has come to light recently is the shortage of raw materials required for manufacturing HCR Silicone. HCR Silicone is heavily used in the production of medical instruments and the automotive industry faces the same severity.
Silicone Short Supply
As previously mentioned, silicone is in short supply. This shortage is caused by the rising demand and the disruption of the raw materials supply chain and production in the Far East. Fluorocarbon polymer (FKM) is especially in short supply and the pandemic is to blame. The demand for silicone products is at an all-time high in the healthcare industry. Without the end of the shortage in sight, the demand continues to grow globally.
China’s Energy Crisis
With China facing one of the worst energy crises due to multiple reasons of varying magnitudes, the global supply chain is suffering huge losses. China is the manufacturing hub that players from all sorts of industries depend on. The recent flooding across key coal-producing provinces of China is the culprit.
The coal and natural gas prices are at all-time highs while the industries suffer due to emergency power rationing policies. Households suffer the same fate as the factories due to intermittent power. With winter fast approaching, inflation, and supply chain shortages are on the rise.
Change in Consumer Habits
The pandemic led to an increase in the demand for consumer products. This spike in consumption was anticipated, but the preparation to meet the mounting demands of the global population was not sufficient. The global supply chain crumbled. Many factories responsible for the production of goods were shut during the lockdowns, and raw materials required for production weren’t available.
Harkesh Rubber’s mission is to keep you well-informed and help you plan ahead in order to ensure there is no short supply of industrial rubber products. Being prudent and having a production forecast with your sealing solutions and rubber provider is essential. Get in touch with our industry experts to learn more.
