Boca Raton, FL – NCCI recently released a new special report that examines supply chain disruptions and their employment impacts, including case studies for the residential construction and auto manufacturing industries.
As the US economy recovers from the COVID recession, businesses are finding it difficult to source critical inputs. Material shortages and logistics bottlenecks are pervasive, but particularly severe in certain sectors.
Overall, the construction and manufacturing sectors represent about 16% of US private employment, and the associated industry groups represent about 40% of workers compensation premium in NCCI states.
Using residential construction and auto manufacturing as case studies, the NCCI report considers scenarios for the impact of supply chain disruptions on production and employment in 2022.
Key Takeaways included:
- A combination of material shortages and bottlenecks in global and domestic logistics is limiting production and hours of work. While these issues are pervasive, their impact differs from sector to sector.
- Supply chain bottlenecks are partially the result of labor shortages. A shortage of truckers remains a critical issue in domestic logistics.
- Despite supply chain bottlenecks, new home construction is well above the level implied by the pre-pandemic trend; but employment is slow to catch up.
- Material shortages in auto manufacturing are likely to slow recovery of both production and employment into 2022.
Read the free Special Report: NCCI: Supply Chain Disruptions and Their Employment Impacts