The latest Francis Scott Key Bridge collapse has caused massive diversions on the East Coast and in the Baltimore region and points out the need for backup sources of supply and agility in the supply chain.
The supply chain is in a constant state of disruption. As we discussed on Supply Chain Chats, simple backup plans are no longer enough. In fact, you can look at recent events and determine if a backup is sufficient. Starting with the pandemic, of course, most if not all companies didn't have a sufficient enough backup plan.
COVID-19 may no longer be a significant public health threat, but the global supply chain remains chock full of risk. The threats are seemingly everywhere these days: The Israel-Hamas war, which is sabotaging trade routes in the Red Sea; extreme drought, which is curtailing shipping in the Panama Canal, and China’s military aggression, which is threatening lawful commerce in the South China Sea.
In this episode of Supply Chain Chats, Lisa Anderson talks about the state of affairs in the global supply chain. From the drought impacting container ship capacity in the Panama Canal to the Iran-backed Houthi rebels attacking container ships in the Suez Canal to the Chinese aggression towards Taiwan and ships passing in the South China Seas, risks are increasing across the global supply chain.
Lisa Anderson, a supply chain expert and president of California-based LMA Consulting Group, says that the Chips Act "has spurred on certainly quite a bit of investment" in the US electric car sector. And Mexico is also booming through 'friend shoring'. ### Why firms are bringing their manufacturing back home [...]
Manufacturing promotes safety and security and mitigates risk. Controlling your supply chain and mitigating geopolitical risk can become paramount overnight as geopolitical events occur, natural disasters emerge, and supply chain challenges arise (strikes, disruptions, shortages).
This is how companies deal with the Red Sea crisis: planes, storage, and closest suppliers.
In the last month, we've participated in at least six economic forecast presentations or discussions with experts (economic, banking, investment, manufacturing). Although they each had nuances, common themes emerged. Adding our expertise into the mix, we see volatility on the horizon.
The recent turmoil in the Red Sea, triggered by Houthi drone and missile attacks, has significantly amplified risks in global shipping, particularly affecting the Suez Canal and Red Sea routes.
Supply chain disruptions are nothing new for the shipping industry. The COVID-19 pandemic presented an unprecedented challenge for the industry. Lisa Anderson comments on the disruptions arising from the current Houthi attacks in the Red Sea and the implications.
