With geopolitical concerns hitting the supply chain, nearly two-thirds of U.S.-based manufacturers plan to freeze wages and recruitment efforts, according to data CNBC cited in a Nov. 4 report.
A slight majority of U.S.-based manufacturers think their supply chains need major improvement, according to a survey conducted by German software giant SAP. Amid multiple geopolitical concerns including the war in Ukraine, more companies are boosting their nearshoring efforts. Despite this trend, the survey found that main disruptions — such as the supply of raw materials and rising fuel/energy costs — remain.
"The supply chain issues are costly and it isn't all due to inflation," SAP board member Scott Russell told CNBC. "The costs to be able to build that resilience are ultimately being borne by the consumer, who now needs to prioritize lower prices over quality."
To offset rising supply chain costs, 50 percent of the surveyed companies said job cuts would be next, and 46 percent said they would increase their prices.