U.S. product recalls reached a 10-year high in Q1
In 2021, 1 billion units were recalled in the U.S. The first quarter of 2022 already saw more than 900 million.
During the first quarter of 2022, the U.S. saw more than 900 units recalled from across automotive, pharmaceutical, food and beverage, medical devices, and consumer products industries, according to Sedgwick’s quarterly U.S. product recall index report.
The volume of units impacted marked the highest number of units recalled in a single quarter in the past decade and surpasses average yearly figures reported during that timeframe. For comparison, 2021 saw a total of 1 billion units recalled in the U.S., according to Sedgwick, which noted the total for 2022 is certain to surpass last year’s total.
Although the number of units affected skyrocketed, Sedgewick found that the number of incidents has only grown 4.8% compared with the final quarter of 2021. However, the number of units recalled in Q1 2022 represents a 464.8% quarter-on-quarter increase.
Driving some of the recall events was increased enforcement and more regulatory focus on the five industries tracked.
“Businesses may also find themselves overwhelmed with the threats to their reputation and their financial success with increased regulatory activity from agencies and lawmakers,” Chris Harvey, senior vice president at Sedgwick, said in a release. “Companies should take every opportunity to evaluate and bolster their recall management, crisis and communications plans to ensure they are prepared for the next product crisis.”
Tainted formula
One recall event that has drawn considerable headlines as of late was the FDA’s recall of 14.9 million units of infant formula.
Overall, the number of FDA during the first quarter actually fell around 12% during the quarter, according to Sedgwick, which noted the average number of units impacted during a food and beverage industry recall reached 1.3 million units. In comparison, the U.S. Department of Agriculture saw a decline in the number of units recalled, as the industry saw just eight events during Q1 2022.
Sedgwick reported activity around infant formula will dominate the food and beverage industry moving forward as the FDA plans to review its programs and policies for formula manufacturers.
Technology bringing more scrutiny to auto sector
Mirroring the food and beverage industry, automakers saw recall events in Q1 2022 fall 13.7% compared with the prior period, but the number of units impacted rose 114.2% to reach 9.3 million, according to Sedgwick. Moving the needle for automotive recalls were events involving electrical systems, which saw a 417% increase in recalls during Q1.
As 2021 was a sharp rise in traffic fatalities, Sedgwick anticipates regulators will significantly increase activity in the sector. Additionally, as more cars with “autopilot” features start appearing on roads, more regulator focus will follow.
Regulators might decide that manufacturers must be responsible for compensating for diver errors when developing autopilot systems as well as advanced driver assistance systems.
This increased scrutiny on autopilot and other driver assistance systems will mean manufacturers must adhere to the strongest quality control processes and deploy a proactive recall strategy to remain compliant.
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