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Part buyers relying on technology, quick to go to market, report reveals
- December 19, 2022
- News Release
- Shop Management
Paperless Parts, a provider of estimating and quoting software for job shops and contract manufacturers, has released its “2022 Custom Part Buyer Report,” based on a survey conducted in partnership with research firm Researchscape.
The report reveals that industrial buyers are under greater pressure today than they were when surveyed in 2020. The survey of more than 600 manufacturing professionals in the U.S., comprising part buyers and engineers working with procurement, highlighted the challenges many manufacturers faced over the last two years. In addition to supply chain issues (84% of survey respondents reported experiencing a supply chain issue in the last two years), skyrocketing material costs, and an uncertain economic climate, manufacturers have been struggling with a labor shortage: the workforce shrunk significantly in 2021 as quit rates in the manufacturing industry increased by more than 50%.
These recent headwinds, combined with a generational shift as baby boomers are retiring at a rapid pace, has led the current class of more digitally savvy buyers to lean heavily on technology to streamline their buying process and fill the skills gap.
Industrial part buyers are now quick to go to market when their suppliers come up short. In 2020, only 54% of survey respondents noted that they turned to new vendors when their current ones failed to deliver; this year, it was 85%.
With the knowledge that buyers are getting younger, relying more on technology, and going to market more often, contract manufacturers can better cater to their customers’ needs. Building stronger customer relationships will be more important than ever, as buyers’ reliance on referrals as a way to seek out new business jumped 17% in the past two years (the bump may indicate that in uncertain times, buyers want vetted, reliable suppliers that come highly recommended).
Additional key findings include:
- The top three ways part buyers find new vendors are internet search (64%), referrals (63%), and trade publications (31%).
- Survey respondents look to a shop’s capabilities (69%) and quality certifications (54%) as signs that the shop will be able to complete their projects successfully.
- Fifty-three percent report that a shop’s technology often or always impacts their experience.
- Ninety-four percent of part buyers report that they’ve tried out at least one new vendor in the last 12 months, indicating that job shops that can respond quickly and fulfill orders on time have an opportunity to get a foot in the door with new customers.
- Forty-seven percent of respondents said that the speed of response directly impacts their decision to work with a shop.
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The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
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