The chaos has laid bare the need to stop looking at foreign supply chains as just a way to save on costs.
“The underlying trend of demand for durable goods remains at very elevated levels and should support sustained production into 2022."
Despite supply chain issues, "business investment is showing no signs of slowing down or a lack of confidence in continuing strength in consumer demand."
Total production rose 0.4% in June but factory output dipped 0.1% amid supply chain constraints, particularly in the auto sector.
"The response of capital spending to the COVID pandemic is encouraging for the outlook for 2021."
The onset of the pandemic reduced the global flow of goods. But when demand suddenly snapped back, supply chains proved less resilient.
“Manufacturing is doing well but it will not be smooth sailing over the next few months", in part because of supply-chain disruptions.
The administration is "identifying potential choke points in the supply chain" amid a shortage that has impacted automobile production around the world.
Manufacturing has been driven by strong demand for factory goods "as 23.7% of the labor force works from home because of the COVID-19 pandemic."
The continued improvement in the key measure of U.S. business investment suggests manufacturers are optimistic about a return to normalcy next year.
“The sugar rush from re-openings has now faded and a resurgence of domestic coronavirus cases ... will weigh heavily on business investment."
The company is “the latest manufacturer to exhibit signs of strain at a time of weakness for the industrial economy."
