Twenty-eight percent of manufacturers have begun buying materials from suppliers closer to their plants in an effort to stem fuel costs, according to a recent survey conducted by manufacturing online marketplace MFG.com.
According to the survey of 450 manufacturers in the US and Canada which was conducted in September, another 25% say they are reviewing contract arrangements with their transportation and logistics providers in an effort to trim fuel costs, while 18% said they are making production changes such as moving from make-to-stock to make-to-order models.
Twenty-two percent of manufacturers said they are planning no changes as a result of higher energy costs.
In addition, 30% of manufacturers surveyed said they plan to raise prices in an attempt to recover high fuel costs. Another 29% said they would compensate through savings or productivity gains, while 14% said they would absorb higher fuel costs and accept lower profits.