Key Takeaways from the March CNBC Supply Chain Survey

In March, WarehouseQuote collaborated with CNBC on a market research study to gain clarity on the state of the supply chain. In this article, we will highlight the key takeaways from the survey.

Business leaders remain optimistic on inventory levels

36 percent of respondents expect inventory levels to return to normal levels in the second half of 2023. 57 percent expect inventory levels to normalize by the first half of 2024. In addition, March’s PMI reading of 46.3 indicates that many firms are still holding off manufacturing new orders to right size inventory levels.

The majority of firms are holding onto excess inventory

Firms are still dealing with elevated inventory levels. Yet, many have decided hold onto the inventory opposed to selling on a secondary market, donating, or destroying. 52 percent of survey respondents said they plan to keep excess inventory in storage.

Warehouse charges have significantly increased for many firms

60 percent of respondents said their warehouse charges increased 10+ percent year-over-year, in line with WarehouseQuote’s Warehouse Pricing Index (WPI). 48 percent of respondents also said warehouse costs were the largest inflationary pressure impacting their business. Check out the latest CNBC ‘State of Freight’ publication for the full breakdown and analysis of the report from Lori Ann LaRocco.