Management of Supplier Risks in Global Supply Chains

The US manufacturing sector contributes over 12% of total US GDP and two-thirds of total US exports. In recent times, companies in this sector are faced with significant operational pressures. With hourly labor costs in China estimated to be 3-4% that of the US, US manufacturers are finding themselves getting priced out of the market by lower cost manufacturers. In addition to the pricing pressure from overseas, the industry has witnessed an inflationary trend in raw material and energy prices. In the last 5 years, for instance, the base steel prices have almost doubled.