Update on supply chain and current lead times for all Hypertherm products

I am writing to provide an update on the current state of our supply chain as well as lead times for all Hypertherm branded plasma cutting products.

The good news is that nearly all Powermax systems are shipping in one to two weeks. While we have improved our XPR, HPR, and MAXPRO200 power supply lead times, intermittent supply chain challenges for components of our power supplies, leads, HPR coolers, and XPR torches are limiting our ability to ship complete systems. We realize this puts a strain on your business and are working with our suppliers to mitigate these issues.

The narrative when it comes to our torch and consumables is mixed. Powermax and most heavy industrial consumables are shipping immediately with adequate supply, capacity, and inventory in place to support growth. Unfortunately, lead times for our heavy industrial nozzles, swirl rings, and XPR torches, while improved, remain at unacceptable levels.

We have undertaken several aggressive actions such as acquiring new capital equipment, expanding production to seven days a week, and investing in additional inventory. As a result, we have improved our backlog situation and lead times for our heavy industrial nozzles and swirl rings. HPR nozzle lead time is now at four weeks, XPR nozzles are down to six weeks, and swirl rings have improved from eleven weeks to nine weeks.

The lead time for XPR torch receptacles and torch kits is at 13 weeks. This long lead time is attributed to exceptionally high weekly demand for the past 12 months combined with intermittent staffing and machine challenges at a key component supplier. We have since worked with our supplier to expand their production to seven days a week, and they are now consistently delivering product at record levels. We have also identified a second supplier and expedited the purchase and installation of specialized machinery needed to manufacture this highly precise component. We expect the above steps will increase our production output by 50 percent and lead to a noticeable improvement in lead times during the next six to eight weeks.

We realize that these long lead times are highly disruptive to you and our shared customers and sincerely apologize for the negative impact these issues are causing. Our operations, engineering, supply chain, and procurement teams are continuing to do everything possible to stabilize supply. Still, I would like to caution that we, like many businesses, continue to experience extraordinary supply chain disruption and volatility. Although we have made significant progress working with our suppliers and alternate vendors to secure steady volumes, invest in inventory, and acquire additional capital equipment, our teams are experiencing critical challenges every day.

As a reminder, we have an escalation process in place to allocate constrained supply to fill critical needs. You can help us by immediately notifying your Hypertherm representative of critical customer needs and continuing to plan for extended lead times.

We will do our best to proactively communicate news of disruptions to you so you can adequately plan your business, once again, thank you for your continued patience.

Mike Scheller
General Manager, Hypertherm Industrial Business