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Special Questions

Special Questions

February 28, 2022

For this month’s survey, Texas business executives were asked supplemental questions on supply-chain disruptions. Results below include responses from participants of all three surveys: Texas Manufacturing Outlook Survey, Texas Service Sector Outlook Survey and Texas Retail Outlook Survey.

Texas Business Outlook Surveys

Data were collected February 15–23, and 367 Texas business executives responded to the surveys.

1. Are you currently experiencing any supply-chain disruptions or delays?

  Feb '21
(percent)
Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Yes 35.5 61.0 64.5 69.7 64.7
No 64.5 39.0 35.5 30.3 35.3
Among firms whose supply chain depends on international suppliers:
Yes         92.7
No         7.3
Among firms whose supply chain does not depend on international suppliers:
Yes         33.9
No         66.1

NOTES: 363 responses.The italicized breakouts are based on firms' responses to question 2 below.

1a. How have these supply-chain disruptions or delays changed over the past month?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Improved significantly 2.2 1.3 0.8 0.0
Improved slightly 16.6 17.3 18.3 24.9
No change 21.4 30.5 29.3 35.6
Worsened slightly 41.0 34.1 39.0 29.2
Worsened significantly 18.8 16.8 12.6 10.3

NOTES: 233 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

1b. When do you expect your supply chain to return to normal?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Less than a month 0.5 0.0 0.5 0.5
1–3 months 8.9 8.4 7.0 4.1
4–6 months 38.1 28.3 26.6 25.4
7–9 months 24.3 22.0 19.6 19.7
10– 12 months 14.9 23.0 21.0 23.3
More than a year 13.4 18.3 25.2 26.9

Downloadable chart | Chart data

2. Does your supply chain depend on international suppliers? Please include both direct and indirect linkages.

  Feb '22
(percent)
Yes 52.9
No 47.1

NOTE: 363 responses.

2a. To what extent are your supply-chain disruptions coming from international suppliers?

  Feb '22
(percent)
None 1.2
Some 69.1
Most 27.3
All 2.4

NOTES: 165 responses. This question was only posed to those currently experiencing supply-chain disruptions or delays and whose supply chain is dependent on international suppliers. These calculations exclude respondents that answered “Not sure,” which represent 6.3 percent of responses.

2b. How have these international supply-chain disruptions or delays changed over the past month?

  Feb '22
(percent)
Improved significantly 0.6
Improved slightly 20.2
No change 46.0
Worsened slightly 25.2
Worsened significantly 8.0

NOTES: 163 responses. This question was only posed to those who have supply-chain disruptions coming from international suppliers.

3. Given your current supply-chain issues, have you considered or implemented any changes to the sources of your supply chain?

  Feb '22
(percent)
Yes 55.1
No 44.9

NOTES: 234 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

3a. If you have considered or implemented any changes to the sources of your supply chain, please describe.

Survey respondents were given the opportunity to provide comments. These comments can be found on the individual survey Special Questions results pages, accessible by the tabs above.

Texas Manufacturing Outlook Survey

Data were collected February 15–23, and 95 Texas manufacturers responded to the survey.

1. Are you currently experiencing any supply-chain disruptions or delays?

  Feb '21
(percent)
Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Yes 61.8 86.1 92.0 92.5 92.5
No 38.2 13.9 8.0 7.5 7.5
Among firms whose supply chain depends on international suppliers:
Yes         95.7
No         4.3
Among firms whose supply chain does not depend on international suppliers:
Yes         82.6
No         17.4

NOTES: 93 responses. The italicized breakouts are based on firms' responses to question 2 below.

1a. How have these supply-chain disruptions or delays changed over the past month?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Improved significantly 2.3 1.3 0.0 0.0
Improved slightly 11.5 10.0 16.5 23.3
No change 23.0 31.3 27.1 33.7
Worsened slightly 43.7 37.5 43.5 29.1
Worsened significantly 19.5 20.0 12.9 14.0

NOTES: 86 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

1b. When do you expect your supply chain to return to normal?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Less than a month 0.0 0.0 1.3 0.0
1–3 months 6.7 7.6 5.3 1.5
4–6 months 33.3 31.8 30.7 31.8
7–9 months 28.0 24.2 17.3 22.7
10– 12 months 17.3 18.2 20.0 18.2
More than a year 14.7 18.2 25.3 25.8

Downloadable chart | Chart data

2. Does your supply chain depend on international suppliers? Please include both direct and indirect linkages.

  Feb '22
(percent)
Yes 75.5
No 24.5

NOTE: 94 responses.

2a. To what extent are your supply-chain disruptions coming from international suppliers?

  Feb '22
(percent)
None 3.1
Some 70.8
Most 23.1
All 3.1

NOTES: 65 responses. This question was only posed to those currently experiencing supply-chain disruptions or delays and whose supply chain is dependent on international suppliers. These calculations exclude respondents that answered “Not sure,” which represent 3 percent of responses.

2b. How have these international supply-chain disruptions or delays changed over the past month?

  Feb '22
(percent)
Improved significantly 1.6
Improved slightly 12.7
No change 52.4
Worsened slightly 27.0
Worsened significantly 6.3

NOTES: 63 responses. This question was only posed to those who have supply-chain disruptions coming from international suppliers.

3. Given your current supply-chain issues, have you considered or implemented any changes to the sources of your supply chain?

  Feb '22
(percent)
Yes 69.8
No 30.2

NOTES: 234 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

3a. If you have considered or implemented any changes to the sources of your supply chain, please describe.

These comments are from respondents’ completed surveys and have been edited for publication.

Chemical Manufacturing

  • Broadened potential supplier list.
  • [Finding] U.S.-based sources.
  • Seeking alternative suppliers, but most are in the same position or there’s no improvement available.
  • Trying to get additional supply and safety stock from China, where supply did come from previously.
  • Looking for domestic alternatives for assurance of supply timing.

Nonmetallic Mineral Product Manufacturing

  • Looking at new vendors outside of China and outside of Asia.
  • Securing additional qualified vendors for certain items critical to the process.

Primary Metal Manufacturing

  • Increased orders to create a larger inventory buffer.
  • Looking to source in different locations.
  • Looking to new vendors.

Fabricated Metal Product Manufacturing

  • Continuously looking for new sources, both domestic and international.
  • We have to go outside of the normal range, therefore increasing shipping costs. We get the new-customer treatment, which is always more than a current customer pays. Loss of local control, so you have to increase inventory, locking up working capital while extending risk.
  • Looking for alternate sources.
  • Looked for new sources.
  • We have tried to find domestic suppliers for foundry castings and fasteners, with almost no success. EPA [Environmental Protection Agency] regulations caused most small foundries to move offshore. Stainless steel fastener manufacturers do not manufacture small quantities of bolts and especially stress-hardened nuts.
  • Pursuing other suppliers to supplement our existing ones.
  • Have changed the materials we use in manufacturing due to either the cost or availability.  
  • Looking for different vendors/suppliers.

Machinery Manufacturing

  • Some materials that we have sourced from China we now get from U.S. manufacturers due to the transit delays that persist.
  • Adding suppliers to our approved vendors list.
  • Keeping about double the inventory of raw materials than in the past.
  • Looking at alternate sources where economically and technically feasible.
  • We’ve found new suppliers, and our customers for the first time don’t have a problem with that. They are actually encouraging us to find new suppliers. That’s a shocker since they have always wanted consistency.
  • We have sought and gone to alternate vendors. We have also increased our inventory of critical components.
  • We’ve considered changing our sources, but all of them are significantly delayed.

Computer and Electronic Product Manufacturing

  • Getting whatever we can to meet customer demands, which increases risk of bad parts and traceability to manufacturer.
  • Seeing what we can source, or components that can be changed.
  • Searching for alternate supply and alternate process methods to reduce or eliminate issues.

Transportation Equipment Manufacturing

  • [Seeking] alternate sourcing—but so are others. Economic uncertainty is making it hard for everyone to plan and commit.
  • Our primary constraint is OEM [original equipment manufacturer] truck chassis, so we have broadened our supply network to look for trucks in inventory anywhere we can find them.
  • Utilizing Mexico.
  • We are in the planning stages currently. Domestic materials (steel mills, etc.) are being replaced by long-term purchases from international mills by our company.

Food Manufacturing

  • Developed primary, secondary and tertiary suppliers, using due diligence to just make the second and third tier aware of us and the potential for us to buy from them.
  • Trying to locate new suppliers and overorder goods when possible to avoid outages.
  • Expanded supplier base.
  • Increasing our outreach to other suppliers/distributors for possible supplies.
  • We have simply added more suppliers to help us source raw materials.

Beverage and Tobacco Product Manufacturing

  • It is hard for me to change, as most of my products are branded and they come from the parent company. I am not in control of their supply chain.

Printing and Related Product Manufacturing

  • Purchasing from suppliers that we have not utilized in the past.
  • Going outside the state to get paper.
  • We’re hoarding raw materials. It is very unfortunate that the U.S. government has allowed [one label materials manufacturer] to become a monopoly. While there are many of us label printers, we all buy our label stock from one major player, whose supply chain is interwoven with their only other worldwide competitor.

Furniture and Related Product Manufacturing

  • Sourcing alternate materials.
  • We are eliminating the source by manufacturing the part ourselves.

Miscellaneous Manufacturing

  • Looking for alternatives to China and Eastern Europe.
  • Looking for alternate domestic options. Long-term contracts to stock material to avoid shipping delays.

Special Questions Comments

These comments have been edited for publication.

Primary Metal Manufacturing

  • The disruptions are very slight and not enough to change vendors or sources.

Fabricated Metal Product Manufacturing

  • We are offering alternate product solutions directed to available goods.

Machinery Manufacturing

  • [We source] both domestic and international steel.

Computer and Electronic Product Manufacturing

  • Our biggest supply-chain issues are tied to integrated circuits, which are oftentimes the central point on which designs are constructed. As such, it's not just an issue of finding a new supplier. If the parts aren't available in sufficient quantities, entire designs have to be updated to utilize alternate options. This situation is driving up material costs to very high levels in some cases and delaying manufacturing in others as designs take time to modify. We have seen parts at 20–30 times the normal pricing in secondary markets, which are the only places to find supplies of certain part numbers. We are generally hearing that this segment of the market might not get back to normal until mid-2023.

Transportation Equipment Manufacturing

  • We fear that things are going to quickly turn bad, and that could be fatal for many companies given all we’ve been through for going on three years.
  • It appears that a significant portion of our suppliers are using "supply-chain disruption" as an excuse for failed planning. We understand that there are good and valid reasons for previously unanticipated delays; however, adherence to just-in-time ordering protocol under the current economic circumstances invites problems.

Beverage and Tobacco Product Manufacturing

  • Out-of-stocks have decreased my sales by up to 30 percent. This revenue reduction—coupled with being short staffed due to worker shortages, other cost increases (the cost of/can’t get new trucks, fuel cost, labor rate increases, etc.) and the cash flow from the Employee Retention Credit being canceled or delayed for months—threatens my business’ ability to remain viable.

Paper Manufacturing

  • In many cases, there are no alternative sources for some of our key components.

Printing and Related Product Manufacturing

  • We have limited choices on where to get our raw materials and supplies, so we have been working with the suppliers as best we can while juggling customer requests and delivery demands.

Plastics and Rubber Products Manufacturing

  • Our suppliers continue to encounter problems getting material into the country. Many still have boats waiting to be docked for offloading. Some of them have been waiting for two months. Nonstandard rubber materials are getting harder to find. This is making it impossible to have rubber material produced, and in many cases, providing an alternative is not possible. Many of our suppliers cite difficulty getting the chemicals they need to make the polymers, as well as shortages in manpower. However, there is light at the end of the tunnel. Some of these suppliers say that recovery could happen in a month or two. Hiring and retaining reliable employees continues to be an issue. This is causing issues on the production side, as overtime is increasing to accommodate the workforce shortage.

Miscellaneous Manufacturing

  • We have seen significant price increases for raw materials in the last month—greater than 20 percent for some materials.

Texas Service Sector Outlook Survey

Data were collected February 15–23, and 272 Texas business executives responded to the survey.

1. Are you currently experiencing any supply-chain disruptions or delays?

  Feb '21
(percent)
Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Yes 25.5 51.8 55.3 61.6 55.2
No 74.5 48.2 44.7 38.4 44.8
Among firms whose supply chain depends on international suppliers:
Yes         90.9
No         9.1
Among firms whose supply chain does not depend on international suppliers:
Yes         26.4
No         73.6

NOTES: 270 responses. The italicized breakouts are based on firms' responses to question 2 below.

1a. How have these supply-chain disruptions or delays changed over the past month?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Improved significantly 2.1 1.4 1.2 0.0
Improved slightly 19.7 21.2 19.3 25.9
No change 20.4 30.1 30.4 36.7
Worsened slightly 39.4 32.2 36.6 29.3
Worsened significantly 18.3 15.1 12.4 8.2

NOTES: 147 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

1b. When do you expect your supply chain to return to normal?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Less than a month 0.8 0.0 0.0 0.8
1–3 months 10.2 8.8 7.9 5.5
4–6 months 40.9 26.4 24.5 22.0
7–9 months 22.0 20.8 20.9 18.1
10– 12 months 13.4 25.6 21.6 26.0
More than a year 12.6 18.4 25.2 27.6

Downloadable chart | Chart data

2. Does your supply chain depend on international suppliers? Please include both direct and indirect linkages.

  Feb '22
(percent)
Yes 45.0
No 55.0

NOTE: 269 responses.

2a. To what extent are your supply-chain disruptions coming from international suppliers?

  Feb '22
(percent)
None 0.0
Some 68.0
Most 30.0
All 2.0

NOTES: 100 responses. This question was only posed to those currently experiencing supply-chain disruptions or delays and whose supply chain is dependent on international suppliers. These calculations exclude respondents that answered “Not sure,” which represent 8.3 percent of responses.

2b. How have these international supply-chain disruptions or delays changed over the past month?

  Feb '22
(percent)
Improved significantly 0.0
Improved slightly 25.0
No change 42.0
Worsened slightly 24.0
Worsened significantly 9.0

NOTES: 100 responses. This question was only posed to those who have supply-chain disruptions coming from international suppliers.

3. Given your current supply-chain issues, have you considered or implemented any changes to the sources of your supply chain?

  Feb '22
(percent)
Yes 46.6
No 53.4

NOTES: 148 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

3a. If you have considered or implemented any changes to the sources of your supply chain, please describe.

These comments are from respondents’ completed surveys and have been edited for publication.

Utilities

  • Trying to increase inventory and ordering items ahead of time.
  • Buying more American-made products.

Truck Transportation

  • We have examined changing like item suppliers who have supply change issues. We elected not to sever long-term relationships for a short-term issue.
  • We have started using several suppliers instead of just one or two.

Pipeline Transportation

  • We've gone out to a broader group of suppliers than we ordinarily would. 

Support Activities for Transportation

  • We are in the process of implementing a quick pay system. We need to better compete for the availability of the transportation equipment.

Warehousing and Storage

  • Attempting to source more local from the U.S. and Mexico.

Credit Intermediation and Related Activities

  • We have been forced to search other resources for product, primarily shortage of components for computers and chips for vehicle purchases. We can get a new truck that runs but without the chip to run the heated and cooled seats. We certainly have been spoiled.
  • We are considering piloting an additive manufacturing program to create automotive parts on-demand.

Securities, Commodity Contracts, and Other Financial Investments and Related Activities

  • Finding more vendors to have options.
  • Changes in customer specifications make changing vendors difficult.
  • Evaluating alternative materials.

Insurance Carriers and Related Activities

  • [Seeking] additional suppliers.

Real Estate

  • Changing materials and supplies and changing suppliers.

Rental and Leasing Services

  • We are trying to find other manufacturers that will at least sell us heavy construction equipment for our rental fleet, or accept us as a new dealer…but most manufacturers already have dealer networks and already are out of inventory or supply for at least a year or 18 months!

Professional, Scientific, and Technical Services

  • Actively seeking other sources for any supplies that have long lead times.
  • Specifying alternative products and materials.
  • Looking for alternative machinery and parts. 
  • We are beginning to look at alternative material selections based on availability.
  • Going to multiple distributors, instead of our usual one or two.
  • We have sought out more local suppliers and began to promote local supplies as an alternative to our clients. Some of the prices are higher.
  • Considering alternate sources.
  • Casting a wider reach for supplies.

Management of Companies and Enterprises

  • It's slowed construction and we've made some selection modifications to potentially speed up the finished product.
  • Trying to find other vendors that can get products to us now.

Administrative and Support Services

  • We have increased the number of suppliers for product, and we are carrying more inventory as a result.
  • I am trying to find suppliers that source from U.S.-based manufacturers. The problem is that they relied on overseas suppliers to the point that they have no other options now. I hope we are learning some lessons from all the ripples in the chain.
  • We are pursuing more products from Mexico as opposed to overseas.

Educational Services

  • We've looked at alternative items/products as well as changing sources. In many cases the other suppliers are experiencing the same issues.

Ambulatory Health Care Services

  • More qualified vendors versus one or two preferred vendors.
  • We are trying to source medical supplies from domestic companies where products are unavailable or slow to arrive.
  • We have considered both a change in the source as well as changes in the components being procured.
  • Reaching out to multiple vendors.

Hospitals

  • We substitute on products where possible from local domestic providers.
  • Converted to domestic manufacturers where feasible.

Social Assistance

  • Looking for different vendors.

Amusement, Gambling, and Recreation Industries

  • We no longer purchase retail product from overseas companies. Trying to purchase from American-only companies. We are still dealing with delays.

Accommodation

  • Shifting sourcing to the U.S and/or Mexico for furniture, fixtures, and equipment.
  • We have gone to outside sources to find textiles and guest supplies. Basically, get what you can…

Food Services and Drinking Places

  • [Seeking] alternative suppliers, bringing some production in house.
  • [Implementing] supplier diversification, product alternatives and replacements or removal.
  • Continually switching brands and trying to make things work, and if not we do not have them.
  • Ordering ahead of time in a bigger amount, so it can last longer.
  • Substituting where possible.

Repair and Maintenance

  • Engineering changes to our product.

Religious, Grantmaking, Civic, Professional, and Similar Organizations

  • Postponed upgrades.

Special Questions Comments

These comments have been edited for publication.

Truck Transportation

  • We do heavy truck repair. We're having issues with common parts like water pumps being on national back order for six to seven weeks. Anything with chips in the part like NOX [nitrogen oxide] sensors have been on a six-month back order with no end in sight.

Pipeline Transportation

  • We have begun to increase our inventory of critical spare parts. In the past, lead times were reliably under 30 days, which meant we did not have to keep as many parts and supplies in inventory. Now that most parts and supplies are back-ordered and often take six to nine months, we have to keep more parts on hand to make sure we can meet our customers’ needs. 

Warehousing and Storage

  • [We are experiencing] mostly minor inconveniences more than anything else. We are unable to get laptops for employee use and supplies for noncritical engineering projects, for example. For more critical issues, generally we can find supply but have to pay more for it, which we've built into our budgeting for the current year. We expect the issues to remain, at least for 2022.

Publishing Industries (Except Internet)

  • Supplies needed are not large enough to significantly affect business in a software and licensing business. But, indirect effects of supply-chain chaos and escalating costs affect all.

Credit Intermediation and Related Activities

  • Our direct supply chain should not be affected, but the prices and availability of homebuilding materials, appliances, and money will all impact us.

Real Estate

  • The supply-chain issues have been minimal and have been things we can adjust to. They also seem to be improving.

Professional, Scientific and Technical Services

  • We buy from U.S. manufacturers only, but they buy from international companies for the parts that go into their final manufactured product. IT products, all kinds of computer chips and monitor glass are in particularly tight supply, which affects much of what we buy. Our back order at year-end was 20 percent of our typical year-end sales. It was reduced a little in January but still very high.
  • There is less price competition due to supply-chain problems and inflation. Certain construction trades are not even providing quotes unless there is a purchase order.
  • We have been involved in several large buildouts, and every supplier is complaining of supply-chain [issues]. This is impacting us, and they are all claiming COVID [as the reason]. We can do little other than accept the claim.  
  • The proliferation of cloud-based computing solutions means that my practice primarily uses paper and toner, which are readily available, at least for now.
  • We probably have low-level supply-chain issues, but they are not material to the business of a law firm.

Administrative and Support Services

  • Employee recruitment, training and retention are key issues.

Educational Services

  • Schools under construction are at risk of not opening on time. Concerns beyond construction materials also extend to technology equipment and installation. Concerns are being addressed by implementing flexible construction plans and deploying just-in-case capital. We are ordering quantities and delivery well ahead of anticipated need.

Ambulatory Health Care Services

  • Supply-chain issues are most commonly related to generic medications and radiopharmaceuticals.

Food Services and Drinking Places

  • We may have an avocado issue.
  • We are seeing a straw shortage, while the glass shortage seems to have leveled out.

Personal and Laundry Services

  • In February, we increased prices by over 18 percent. This was required due to increases in supply products and labor expenses. We are very short-staffed and are trying to hire barbers and stylists. We are spending at least $2,000 a month advertising on [online job boards] and are offering $1,000 sign-on bonuses and $500 employee referral bonuses. We have increased pay by over 20 percent and are starting new employee benefits plans to attract and retain employees. On March 1, we are starting a health insurance plan for all full-time employees and a retirement plan with 3 percent company match for all employees. Total annual expenses for these benefit plans are estimated to be $120,000 to $160,000. We are doing everything we can to attract new employees, but we are still not getting applicants. We need to increase our labor force by at least 30 percent.

Texas Retail Outlook Survey

Data were collected February 15–23, and 45 Texas retailers responded to the survey.

1. Are you currently experiencing any supply-chain disruptions or delays?

  Feb '21
(percent)
Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Yes 64.4 87.2 80.9 93.0 84.4
No 35.6 12.8 19.1 7.0 15.6
Among firms whose supply chain depends on international suppliers:
Yes         97.0
No         3.0
Among firms whose supply chain does not depend on international suppliers:
Yes         50.0
No         50.0

NOTES: 45 responses. The italicized breakouts are based on firms' responses to question 2 below.

1a. How have these supply-chain disruptions or delays changed over the past month?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Improved significantly 0.0 0.0 0.0 0.0
Improved slightly 22.0 23.7 25.0 21.1
No change 17.1 28.9 30.0 34.2
Worsened slightly 34.1 15.8 32.5 31.6
Worsened significantly 26.8 31.6 12.5 13.2

NOTES: 38 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

1b. When do you expect your supply chain to return to normal?

  Jun '21
(percent)
Sep '21
(percent)
Nov '21
(percent)
Feb '22
(percent)
Less than a month 0.0 0.0 0.0 0.0
1–3 months 15.4 11.1 2.8 0.0
4–6 months 41.0 16.7 25.0 25.7
7–9 months 12.8 16.7 25.0 25.7
10– 12 months 23.1 22.2 16.7 20.0
More than a year 7.7 33.3 30.6 28.6

Downloadable chart | Chart data

2. Does your supply chain depend on international suppliers? Please include both direct and indirect linkages.

  Feb '22
(percent)
Yes 73.3
No 26.7

NOTE: 45 responses.

2a. To what extent are your supply-chain disruptions coming from international suppliers?

  Feb '22
(percent)
None 0.0
Some 63.3
Most 30.0
All 6.7

NOTES: 30 responses. This question was only posed to those currently experiencing supply-chain disruptions or delays and whose supply chain is dependent on international suppliers. These calculations exclude respondents that answered “Not sure,” which represent 3.2 percent of responses.

2b. How have these international supply-chain disruptions or delays changed over the past month?

  Feb '22
(percent)
Improved significantly 0.0
Improved slightly 20.0
No change 36.7
Worsened slightly 30.0
Worsened significantly 13.3

NOTES: 30 responses. This question was only posed to those who have supply-chain disruptions coming from international suppliers.

3. Given your current supply-chain issues, have you considered or implemented any changes to the sources of your supply chain?

  Feb '22
(percent)
Yes 36.8
No 63.2

NOTES: 38 responses. This question was posed only to those who are experiencing supply-chain disruptions or delays.

3a. If you have considered or implemented any changes to the sources of your supply chain, please describe.

These comments are from respondents’ completed surveys and have been edited for publication.

Merchant Wholesalers, Durable Goods

  • Having to purchase from wholesalers and pay more for product currently out of stock at the manufacturer.  Also having to source from other manufacturers that make like product, both domestic and international companies.
  • Looking at alternative countries.
  • Added new suppliers.

Merchant Wholesalers, Nondurable Goods

  • We are exploring and utilizing alternative suppliers, ingredients and contract manufacturers.
  • We look for product available over the internet, specifically U.S. made.
  • Looking for new or additional suppliers
  • Expanding network of trucking companies that move our freight in the U.S. Relocated export shipping from Los Angeles to Houston to serve South America.  LA is too congested to move timely. LA containers were constantly being rolled to a later sailing date with no advanced warning.

Motor Vehicle and Parts Dealers

  • Looking for new suppliers.

Furniture and Home Furnishings Stores

  • Increased our own truck fleet to reduce the need for common carriers.

Building Material and Garden Equipment and Supplies Dealers

  • Sourcing new suppliers, but difficult to find any that will take new business.
  • Looking for new sources. Windows are eigtht months out, appliances are six months out, lam [laminated] beams can rarely find. This is a huge issue with everyone.

Health and Personal Care Stores

  • Looking at other vendors.

Miscellaneous Store Retailers

  • Actively researching other suppliers of the same or similar product.

Special Questions Comments

Merchant Wholesalers, Durable Goods

  • We import goods from Asia and South America. Our supply-chain challenges and delays have largely been from COVID in these countries, ocean freight rates and inland freight. The inland freight has become a huge issue since December and remains our chief obstacle and challenge. There just simply are not enough trucks to haul the containers to the final destination for unloading, whether trucking from Houston (from South America) or from UP [Union Pacific] Wilmer (from Asia).
  • Supply-chain challenges have worsened with semiconductors, resins and precious metals.

Merchant Wholesalers, Nondurable Goods

  • There is lots of domestic trucking pressure on the West Coast because Asian suppliers are willing to pay higher trucking rates to move their goods from Los Angeles to the rest of the U.S. This reduces available truck capacity for local drayage moves to the port of LA–Long Beach. Long wait times at the ports are also discouraging local drivers because they can't make as many local moves in/out of the port each day. They're now seeking higher-paying routes.

Motor Vehicle and Parts Dealers

  • There aren't any changes to the sources of our supply chain that are any better than the ones that we have.
  • Our supply-chain issues are tied to new-vehicle production and are out of our control.
  • We don't control the supply chain. Manufacturers do for both vehicles and parts.

Questions regarding the Texas Business Outlook Surveys can be addressed to Emily Kerr at emily.kerr@dal.frb.org.

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