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21. 12. 2023

5 min read

Top 3 largest manufacturing companies by revenue facing producer manufacturing disruptions in 2023

In the complex web of global commerce, the manufacturing sector stands out for its impact on economic trends and employment rates. However, it is also a sector prone to various operational disruptions. In this article, Semantic Visions presents an overview of the top 3 global manufacturing companies by revenue affected by disruptions. By processing over 1.1 million articles in 12 languages daily, we ensure that risks can be identified as soon as any indications arise, enabling a proactive rather than reactive response to emerging threats. We can help you screen potential suppliers as part of an onboarding process and maintain ongoing oversight with our supply chain screening and monitoring solution. By continuously monitoring the global media landscape, our fully automated AI-led system delivers hyper-targeted alerts in near real-time to help you with the multifaceted challenge of risk management.

Before delving into the specific challenges, let’s introduce the top three players in the manufacturing industry based on revenue – Toyota, Volkswagen, and Apple, and examine the disruption trend lines connected to their operations from January 1st to December 19, 2023.

1. Representative manufacturing disruption events for the top three companies

Our cutting-edge system excels at efficiently managing large datasets, enabling us to uncover valuable insights into the various challenges faced by leaders in the manufacturing sector. Let’s now explore noteworthy examples of events from the top three manufacturing companies by revenue (Toyota, Volkswagen and Apple) in 2023. Our system adeptly extracts key highlights from a wide range of data sources, providing a comprehensive view of how disruptions have affected these industry giants.

1.1. Toyota: Varied disruptions

Toyota, a perennial frontrunner in the automotive sector, faces a spectrum of disruptions, the most prevalent being discontinuity, corporate bans, and supplier problems. A detailed breakdown of top 3 distinct events Toyota encountered includes:

  • Discontinuity: There were 301 events of disruptions, with the most notable incident on August 29, 2023. Toyota Motor Corporation suspended operations at all 14 of its factories in Japan due to a technical glitch in their production system. This shutdown significantly affected Toyota’s global production and highlighted vulnerabilities in modern manufacturing systems.
  • Corporate Ban: In 250 reported events, a significant event occurred on November 22, the UK’s Advertising Standards Authority banned Toyota’s Hilux SUV ads. The ban, a significant blow to Toyota, was due to the ads’ encouragement of off-road driving without considering environmental impact. The authority condemned Toyota for promoting driving behavior that showed disregard for nature and the environment.
  • Supplier Problems: There were 108 events highlighting Toyota’s reliance on its suppliers. A critical moment occurred on October 17, 2024, when Toyota halted operations at six domestic plants due to an explosion at a supplier’s factory in Aichi Prefecture, “Japan”, affecting the production of vehicle suspension coils.

1.2. Volkswagen AG: Coping with disruptions in supply and production

Volkswagen disruptions were influenced by IT outages and supplier-related issues.

  • Discontinuity: Volkswagen’s production faced 27 disruptive events. A notable incident on September 28 involved an IT outage, causing a temporary suspension of operations at several VW brand plants, including Emden, Zwickau, Osnabrück, and Wolfsburg, and also affected Audi. The problem was resolved overnight, enabling the resumption of global production, though some systems may have experienced lingering effects. This event coincided with Volkswagen’s decision to reduce shifts at two German factories, which was attributed to a declining demand for specific electric models.  
  • Supplier Problems: Volkswagen faced 27 events, with a notable event occurring on August 30, 2023, leading to production delays in Germany. These delays were triggered by flood-related disruptions at a Slovenian engine parts supplier, causing restricted component availability and significantly impacting various VW facilities focused on combustion engine assembly. This ultimately resulted in a production stoppage at the VW plant in Palmela, Portugal. 
  • Shortages: There were 17 events related to shortages. A significant event was documented on January 10, 2023, when Volkswagen AG’s sales hit an 11-year low. The company recorded a 6.8% decline in sales, totalling 4.56 million vehicles. This decrease was mainly attributed to semiconductor shortages that affected production in 2022. These challenges were part of broader supply chain issues, exacerbated by global events such as the war in Ukraine.

1.3. Apple: Corporate ban struggle

Apple has faced various challenges across different events, impacting its operations and strategies:  

  • Corporate Ban: Apple encountered significant challenges in 1623 events, primarily due to corporate bans. A notable example occurred on December 18, when Apple temporarily suspended the sales of its Series 9 and Ultra 2 smartwatches in the US due to a patent dispute involving the blood oxygen technology. This decision followed a ruling from the US International Trade Commission in October, which found that Apple had violated Masimo’s patent rights.
  • Shutdown: Apple faced 190 events involving shutdowns. A notable event on December 10th was when Apple disabled Beeper Mini, a move that ignited discussions about messaging security and user privacy.
  • Supplier Problems: There were 175 events related to supplier issues. A significant incident occurred on February 27 when Foxlink, an Apple supplier in India, had to halt production due to a massive fire, causing considerable damage but no casualties.  

2. Conclusion

These events, captured and quantified through our robust data processing, illustrate the challenges and disruptions faced by manufacturing companies. They also highlight the value of our product in providing actionable intelligence. Our clients can use this intelligence to identify potential disruptions by detecting early signs of supply chain issues or production halts. Additionally, it helps in analyzing the impact of regulatory changes, environmental factors, or geopolitical events on manufacturing activities. Furthermore, it aids in assessing and mitigating the financial and operational implications of these disruptions for the involved companies.

Learn More Through Our Data

Understanding these disruptions can empower your organization to anticipate and manage potential risks better. Our product offers detailed analyses, historical data trends, and predictive insights, enabling you to strategize with confidence. Explore Semantic Visions’ services to see how you can benefit from our comprehensive data analysis and protect your business against similar events.

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