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Uptime Index up four points as manufacturers absorb supply shocks

The latest results from the Rubix Uptime Index indicate growing confidence amongst European manufacturers, with the overall score rising four points to 79 over the past three months. However, rather than suggesting that supply chain pressures are easing, the findings point to manufacturers becoming better equipped to respond to disruption, with many increasingly willing to absorb additional costs to secure supply and protect uptime.

Some manufacturers are choosing to bring supply closer by consolidating suppliers and holding more critical stock, while others are accepting higher prices to guarantee certainty of supply. This ability to invest in resilience is also reflected in the stronger confidence reported by larger manufacturers, which are typically better placed to absorb additional costs and build greater flexibility into their supply chains.

“This is the fourth wave of our Uptime Index, and we’re continuing to uncover some interesting insights into how manufacturers right across Europe are adapting to change,” says David Cullern, Group VP Key Accounts at Rubix. “The rise in confidence we’ve seen this quarter seems to be a direct result of manufacturers becoming better equipped to deal with supply chain pressures – rather than those pressures easing.

“Supply chain disruption is becoming harder for manufacturers to predict, and so they have to adapt their approaches. One of our key findings in this research is the changing perception of cost, and how increased prices are seen to deliver greater certainty to keep production moving, reduce delays and maintain reputations. One manufacturer told us how they are paying 20% more to source machined parts closer to home in return for components arriving 50% faster, while for others, premiums of up to 80% are being paid where parts are urgently required.”

The Rubix Uptime Index is delivered in partnership with Parker Hannifin, SKF and Loctite, and provides a periodic health check on the performance of European manufacturing. By tracking confidence across manufacturers today, it reveals how well they’re keeping production lines running, how much they’re investing in the future of their companies, and how well they are responding to issues causing costly machine downtime across the sector.

The latest white paper delves into the supply chain reaction

Alongside the latest Uptime Index, Rubix has published the latest in a series of white papers to take a deep-dive into the factors affecting manufacturing uptime – this time focusing on supply chain resilience.

The research identifies a four-stage supply chain reaction, where limited availability of parts leads to disrupted operations and, ultimately, reputational damage.

With insight from manufacturers across the UK and Europe, the research demonstrates how quickly supply chain challenges can escalate. For instance, products sourced through long supply chains can now take twice as long to arrive than previously experienced, with delays being more commonplace. For one manufacturer, a four-week delay on critical parts put a project worth close to £750,000 at risk.

Behind these challenges, the white paper uncovers the gap that is widening between manufacturers. Larger manufacturers can typically hold more inventory, draw on wider supplier networks and absorb premiums where parts are urgently required. On the other hand, smaller manufacturers have less flexibility and, therefore, are at greater risk of shifting supply chains.

To support manufacturers to protect uptime and strengthen supply chain resilience, the white paper outlines five key steps, including: bringing supply closer, consolidating supplier bases, holding stock where it matters most, improving visibility across assets and inventory, and using predictive maintenance to anticipate failures before they happen.

To find out more, download the full white paper at: www.rubix.com/uptimeindex

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