New York — Domestic supply-chain purchasing is on the rise, according to the Thomas Register's Industrial Purchasing Barometer report released in May. The report was established after the September 11 terrorist attacks to more closely monitor the dynamics of industrial purchasing among Thomas Register's 760,000 online users.

During the unrest in the aftermath of 9-11, people were concerned about the reliability of the supply chain, said Thomas Register publisher Ruth Hurd.

"Just-in-time purchasing became a risky concept because if any further unrest occurred, it could disrupt the supply chain," Said Hurd. "So buyers backed off from JIT."

She said buyers are more confident in their suppliers' abilities to provide products and are returning to JIT. This is also reflected in April's IPB.

More than half of the survey respondents indicated plans for increased JIT buying this year. Another 30 percent will maintain current levels.

"The greater concern is cost," said Hurd. "Right now, the cost savings of JIT seem to outweigh the risks."

Despite confidence in JIT, there are perceived risks in international trade, said Hurd. This is the primary motive for the increase in domestic purchasing although patriotism may play a small role, she added.

"Even though in some cases domestic goods may be more expensive, having the goods on hand presents a better value than a bargain price," said Hurd. "The potential cost of a supply disruption could be much higher."

These trends may have little effect on distribution, however, according to W.W. Grainger, Inc. vice president of product management Fred Loepp. He said customers continue to depend on Grainger to supply products reliably and on time.

At Grainger, purchasing is based on manufacturer lead times and the Forest Lake, Ill.-based distributor has not had to make significant changes, said Loepp.

In many cases, distributors are constrained by customer requirements, said spokesman Steve Slaggie of Winona, Minn.-based Fastenal Co. Many of the specified parts the distributor provides are only manufactured overseas.

"Fastenal purchases domestically whenever possible with respect to price constraints," said Slaggie. "We have been adding to our inventory levels due to increasing customer demand as the economy recovers."

Motion Industries senior vice president of marketing Ralph Buntyn said the Birmingham, Ala.-based distributor has not changed its buying practices in the last year.

"Our international suppliers predominantly have U.S. manufacturing capabilities and thus far have maintained adequate inventory levels," said Buntyn. "We have seen no noticeable trend ... in the purchasing habits of our customers."