United StatesModern manufacturing faces a growing challenge related to unplanned downtime, which costs the world’s 500 largest companies nearly $1.4 trillion annually—equivalent to 11% of their revenue. This issue has shifted procurement priorities, with manufacturers now emphasizing supplier reliability and availability alongside cost. Brian Dengel, founder of KHK USA Inc., highlights that the financial impact of downtime is immense, with large automotive plants losing up to $2.3 million per hour. As a result, sourcing decisions prioritize guaranteed availability over price alone. Companies like KHK USA provide stocked components and engineering support to ensure quick access to critical parts, enabling faster production and reducing delays. Reports indicate that 86.2% of U.S. manufacturers have taken steps to reduce supply chain risks in recent years, reflecting the urgency of securing reliable suppliers.
Bias read (Center): The article discusses economic trends in manufacturing without taking a stance on political issues. It focuses on industry practices, costs, and supply chain management, avoiding any partisan commentary or framing that would suggest a political lean.
