IPC International Community magazine an association member publication
Issue link: https://iconnect007.uberflip.com/i/1527867
IPC COMMUNITY 82 FALL 2024 INDUSTRY INTELLIGENCE By Shawn DuBravac, Ph.D., IPC Chief Economist The post-pandemic inventory landscape underscores a delicate balance between resilience and efficiency In the aftermath of the 2008 finan- cial crisis, manufacturers made sig- nificant adjustments to inventory management strategies as they faced sharp declines in demand and eco- nomic uncertainty. Manufacturers moved to scale back production and attempted to quickly reduce inventory levels. Post-crisis, many manufacturers adopted lean inventory practices, such as just-in-time (JIT) production, to minimize holding costs and illi- quidity risks. The crisis highlighted the risks of large invento- ries during periods of volatile demand and price fluctuations, prompting a greater focus on sup- ply chain efficiency. While some sectors recov- ered quickly, others—particularly those reliant on consumer spending and credit markets, such as automotive and durable goods—experienced a slower rebound. Manufacturers remained cau- Are Firms Holding Too Much Inventory?