Q4 2023 MEP Cost Index Report

2023 has wrapped with manufacturers improving the accuracy of quoted lead times. However, high demand product lines will still require careful coordination between stakeholders to maintain and sometimes modify the schedule. Although lead times have steadied, manufacturers continue to communicate the current lead times are the new normal and do not foresee a return to pre-covid levels.

2024 common cost drivers are labor and insurance. Aside from streamlining processes, a large percentage of manufacturers are changing workflow to batch manufacturing ??? several units are built simultaneously in each phase instead of a linear product line of individual units. The changing environment has provided workers with expanded skills sets and increased safety to avoid repetitive use injuries. Safety and sustainability are now viewed as strong investments to preserve and promote the workforce.