Michigan manufacturers have yet to find the light at the end of the snarled supply chain, and some are running out of time. Gissing North America LLC is the latest casualty of the inflation and production volatility that has defined the automotive industry over the past two years, Crain's Detroit Business reported. As the first metro Detroit-based supplier to file for bankruptcy in recent years, it could be a harbinger of other small- and midsize suppliers caving to financial pressures. "I think you're starting to see the compression happening. Consumer confidence is declining," said Van Conway, CEO of Birmingham, Mich.-based turnaround firm Van Conway & Partners. "It's somewhat unanimous across the board dealing with these middle-market lenders that they think a storm is coming." Bankruptcy lawyers and restructuring specialists have been forecasting that storm for months. While there has been some restructuring and distressed M&A, there have been few bankruptcies. The fallout from the semiconductor shortage and other supply chain problems has been nothing close to what many had feared. Some clients are just now starting to see success in renegotiating contract terms to spread inflated costs of materials, labor and transportation more evenly between supplier and customer, he said, but the financial pinch remains sharp on suppliers. Read more. (Subscription required.)
