Manufacturing supply chains are no stranger to sudden changes and intricate complexities, which is why they require strategic planning and flexibility.

Volatile commodity prices can often be a challenge supply chain managers must overcome; however, the prices of raw materials are reaching unprecedented levels.

Some of the most lucrative raw materials to manufacturers are experiencing a steep climb in price. Let’s break it down.

Some analysts predict a drop in price could occur in the next quarter, while others believe the surge will continue through year end.

So, what is driving these price increases?

The COVID-19 pandemic created the largest, most uncontrollable supply chain bottleneck of all, and once operations could re-open, pent up demand flooded supply chains from the top down. The strong customer demand continues to contribute to the pre-existing bottlenecks.

Add in the increased competition for raw materials and electronic components and manufacturing supply chains are in the center of an extremely volatile market.

Through all these challenges and uncertainties, Mitsubishi Electric is leveraging strong strategic partnerships and on-hand inventory to fulfill our customers’ needs, ensuring their business doesn’t go dark.

Edited by Nicole Kristof, Senior Marketing Specialist