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Top Risks for the Manufacturing Industry

Supply chain and labor concerns are keeping CEOs awake at night

BDO USA
Tue, 06/10/2014 - 15:30
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The manufacturing industry is poised for growth in 2014. Still, the second annual BDO USA LLP analysis of risk factors listed in the most recent 10-K filings of the largest 100 publicly traded U.S. manufacturers found that they will contend with a number of challenges as they work to capitalize on an improving economy and increased capital spending.

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Chief among them is achieving a secure and efficient supply chain, a risk cited by 100 percent of manufacturers this year, up from 83 percent in 2013. Manufacturers are increasingly concerned about forecasting errors which could lead to backlogs or shortages, as well as quality issues they may encounter with suppliers. Moreover, 88 percent of manufacturers note risks related to natural disasters, which could cause transportation breakdowns and significant delays.

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