Dockworkers from Maine to Texas agreed to return to work on Friday, suspending its strike until January 15th while it negotiates a new contract. People connected with the negotiations say workers will agree to a 62% pay increase over six years.
The walkout earlier this week created strong concerns over shortages and supply chain disruptions. tED magazine reached out to distributors, manufacturers, and manufacturers reps to learn about potential strategies and best practices to supply needed parts and keep job sites functions.
Most of the companies that responded provided tED magazine with the letter they sent to partners and customers explaining the steps being taken during the strike.
Manufacturers
Prysmian
Prysmian has a robust supply chain network and is currently implementing a variety of actions to mitigate against the current East and Gulf Coast port strike. These actions include:
- Building inventories to mitigate the potential impact
- Moving certain freight to the West Coast where possible
- Developing alternatives on shipments from EU to divert to either Canada or Mexico, where it makes sense
- Purchase additional raw materials from alternative suppliers that are not impacted by the strike
For now, we do not anticipate an immediate supply disruption due to the ongoing strike. Our intent is for these actions to minimize or prevent future disruption. While we are confident in our immediate ability to maintain operations, we understand that situations may change quickly. Therefore, we continue to stay vigilant with our supply base to preserve our operational capabilities.
We understand that our customers may have questions about our ability to serve their needs. Please know that we are working feverishly to ensure delivery of all customer orders. As the strike continues, we will reach out to anyone who may be impacted by this situation, should the current environment change.
Statement by Siemens Spokesperson:
“As a major contributor to the national economy, Siemens has been closely monitoring this situation. We will continue to assess any potential impacts to our businesses and our customers as they unfold.”
ABB
We wanted to assure you that we are closely monitoring the situation and have take proactive measures to mitigate potential disruptions, including:
- Increased Inventory: We have increased our inventory for high-demand products to ensure continued availability
- Uninterrupted shipments: Shipments from our U.S. and Mexico factories remain unaffected.
- Air transport for key products: High-demand products (like circuit breakers) from our European factories are regularly transported by air as part of our standard operating procedures and therefore remain unaffected.
- Monitoring and Adjustments: We continue to actively monitor the situation and are working with our carrier network to manage any impacts. This includes potential re-routing of ships en route and securing additional air transportation capacity as needed.
While a certain subset of products from our European factories may experience some delays, we are committed to minimizing any impact on your operations. Our team is dedicated to ensuring that you receive your orders in a timely manner and will keep you updated with any significant developments.
Manufacturer’s Representatives
Casey Electrical Sales
“At Casey Sales, we are closely monitoring the ongoing port strikes and their impact on the supply chain. While these disruptions have not yet presented significant challenges in getting products to our customers on time, I’m sure in a few weeks there will be significant impact on already backordered products. We are working closely with our manufacturers to fulfill products, even if it means shipping it across the country from uncommon warehouses. Some manufacturers are attempting to re-route new shipments to non-impacted ports to mitigate these delays. We are also ensuring our customers stay informed with regular updates on any potential delays. Our goal is to maintain the high level of service our customers have come to expect, despite these external challenges.”
Distributor
Elliott Electric Supply
“In light of the ongoing strike, we are proactively reaching out to our key suppliers to gain insights into any potential product impacts. Many of our partners believe they have sufficient inventory to support us, provided the strike does not extend for too long. Some suppliers do not rely on the affected ports, while others may have specific product lines that could be impacted.
To address potential inventory disruptions, we are connecting with our stores to see if they would like to increase their on-hand stock. Our goal is to minimize stock shortages while being mindful of current higher interest rates and their impact on profitability. If the strike extends beyond 30 days, we anticipate that distributors may face challenges similar to those experienced during the COVID-19 pandemic. However, our company’s approach of maintaining a slightly higher level of stocked materials positions us to stand out and better serve our customers.”