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Industry News
Manufacturers NewsLow inventory volcano trip up U.S. manufacturersThe strategy of keeping inventories lean paid off for U.S. manufacturers during the recession. Just-in-time delivery of parts makes even more sense when budgets are tight.Now that a giant ash cloud from a volcano in Iceland is disrupting global air freight, some manufacturers are finding that this strategy is backfiring. Nissan suspended production at two Japanese auto assembly plants Tuesday and BMW was forced to idle three plants in Germany because of shortages of critical parts. Computer maker Dell is experiencing delays in getting notebook computers to European customers.These kinds of production delays could lead to higher prices for a number of everyday items ---- from cell phones to seat covers, experts say. Some say the disruption from the volcanic ash cloud will lead companies to make changes in the way they do business.Bill Carreira, CEO of Carreira Consulting LLC, who works with companies to develop and implement lean inventory plans, expects some manufacturers will revert to less-efficient methods.
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