A recent survey conducted by the Professional Audio Manufacturers Alliance (PAMA) of its member companies showed that about 86% of respondents were moderately to majorly affected by pandemic-born supply chain disruptions and the simultaneous interruptions in semiconductor fabrication. PAMA revisited the topic of supply chain issues with the survey to get an overview of lessons learned and whether any concerns still lingered.
None of the respondent companies claimed they were unaffected by the supply chain crisis, though 14% said they were barely affected. That said, supply chain issues and the shortfall in semiconductor availability had major or high impact on how 72% of the manufacturers source materials and components.
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“We committed substantial resources to increase our inventory,” said Chris Regan, chief innovation officer and co-founder of RF Venue (and chair of PAMA’s board of directors). “Luckily, we did not experience the long-term stockouts that affected other manufacturers. We relentlessly marketed the fact that we had product in stock and gained a lot of new business as a result when competitors could not ship their product.”
On average, respondents said that the way their company designs and develops products was only mildly affected by the supply chain disruptions, though the responses varied widely, with 57% saying there was little effect and 43% citing a moderate to high degree of impact. Also, more than half of respondents said the supply chain disruptions minimally affected or had no effect on their product shipping and distribution methodologies, but 43% said those methodologies were majorly or highly affected.
David Fuller, VP of engineering and product management—pro audio, QSC, noted that pro audio "took a backseat to the automotive industry with regards to prioritization of IC supply.” Remaining post-crisis concerns relate to shipping times and rates for some respondents, whether by ocean, air, or land. QSC’s Fuller specifically noted shipping time concerns “in the Red Sea and Panama Canal.”
According to Regan, the lessons learned during the pandemic are now entrenched in the industry's best practices. For example, James Lamb, president, CEO, and co-founder of Point Source Audio, reported that pandemic-era issues are not lingering, though his company is “constantly checking for issues with raw materials.” Greg Beebe, EVP United States, Sennheiser, said the company has implemented "strategic purchasing and redesign” and remains vigilant over maintaining inventory.
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Regan said RF Venue is currently not experiencing any unordinary supply chain issues. "Because of the supply chain disruptions in the market, we proactively made the move to design, build, and test our products in the USA,” he explained. “It may not be an approach that works for all products, and in certain cases it is more expensive, but when you factor in the amount of cash that needs to be tied up for large overseas suppliers and add in the freight costs and time delay for delivery, being in control of production in-house becomes a very attractive option. I see other manufacturers doing the same and have a sense that there is a large ‘onshoring’ effort going on in the U.S. across many industries.”
