In October of 2024, the International Longshoreman’s Association (ILA) announced their intention to go on strike since they failed to reach an agreement with the ports on the East and Gulf Coasts, represented by the United State Maritime Alliance (USMX). The major points of contention included wage parity and limitations on the use of automation, which could replace manual dockworker labor. Fortunately, the strike was suspended when a tentative deal was made on wages until January 15, 2025, which is the deadline for negotiating a new contract.

Figure 1: October 2024 dockworkers strike. Source: INC Magazine

A prolonged dockworker strike on the East and Gulf Coasts would have a devastating effect on the economy, which experts claim can cost up to $4.5 billion per day. Thirty-six ports would be shut down, resulting in supply chain shortages for companies, increased costs for consumers and potential job losses for American workers. Major economic sectors and industries that would be affected include manufacturing, construction, retail, food services and transportation. In short, almost any product that consumers and businesses rely on may be adversely affected by a dockworker strike on the East and Gulf Coast ports.

In the event that the ILA and USMX fail to reach an agreement, companies can proactively mitigate the downside risks of a longshoreman strike by doing several things:

• Companies should perform a supply chain risk assessment to determine which materials or products are the most vulnerable to disruption. Obviously, the highest vulnerabilities will be assigned to those goods that are available primarily through the affected ports.
• Alternative sources of supply or substitute products should be identified and pre-qualified that do not rely on the affected ports. These might include goods that arrive through West Coast ports or goods that are produced domestically.
• Vulnerable materials and products should be purchased immediately in bulk and stored for future use. Because they are purchased in bulk, they may be available at lower prices.

National Bolt & Nut Corporation (NBN) is an ISO-certified manufacturer and distributor of stocked and custom nuts, bolts and fasteners for numerous customers in diverse industries. NBN has been proactively managing the East and Gulf Coast strike situation to minimize any disruptions to product deliveries, and they continue to monitor port activities throughout the country so that they can rapidly respond to new developments.

NBN regularly replenishes stock levels in their warehouses, strategically pre-manufactures critical parts and releases parts to customers that have authorized annual blanket purchase orders. They have already met with overseas suppliers to develop and implement action plans to address potential port closures. These plans included the identification of alternative shipping routes through West Coast ports to mitigate delays, and the adjustment of shipment schedules in advance of any potential port closures. NBN believes that these and other proactive measures will minimize the downside risks to customers in the event of a future port closure.

NBN differs from any other fastener supplier in that they maintain a true partnership-relationship with their customers. They strive to understand long-term challenges that customers may face, adapt their manufacturing forecast and plan to accommodate future or potential issues. NBN also offers full certifications with all orders, full material traceability, quick quotes and honest lead times. Because of NBN’s outstanding relationships with their customers, they rely heavily on repeat and referral business.

Figure 2: NBN products. Source: NBN Corporation

NBN manufactures and supplies stocked and custom nuts, bolts and fasteners to the aerospace, automotive, agriculture, chemical, energy exploration, heavy equipment, mining, power generation, rock crushing, building and construction industries. The company is capable of rapidly producing a wide range of custom fasteners using a variety of materials and manufacturing processes, including specialized capabilities in mechanical design, metallurgy and plastics, material forming, machining and finishing.

NBN also has an in-house quality control department, which is an integral service that enables them to provide among the highest quality products with certifications and traceability to several well-known industry and government standards. These capabilities enable NBN to rapidly manufacture and deliver stock and custom fastener products to their diverse customer base and thereby reduce production risks, delays, downtime and costs.

Contact NBN today to learn more information about the company’s stock and customer fastener products, along with how they can forge a true lasting supplier relationship.