China And The Possibility Of More Supply Chain Chaos

According to a recent survey of manufacturers, China’s factory activity contracted further in December as rapidly spreading infections grounded workers, snarled deliveries, and dampened demand. Consequently, major Western and Asian economies have been encouraging reshoring or near-shoring to ensure supply chain security, after the first round of supply chain mayhem mainly caused by China itself.

However, China’s strength in industrial prowess and labor, even amidst a raging epidemic, is hard to beat. For companies that have no plans to diversify their supply chain from China, worker shortages and factory closures, due to outbreaks of the virus, is the inevitable dilemma they are facing now.

The possibility of another international business shock in 2023 is real and rising. Here are four issues that can seriously impact your firm’s supply chain.

1. US government actions. Regulations, restrictions, and much more.

2. Chinese government. Retaliation, industrial policy, lockdowns, and much more.

3. Technical divergence. China is getting good at manufacturing things we don’t use.

4. Economics. Rising costs, recognizable risk, compliance, and more.

Meanwhile, here in States there are very few ships are waiting to be docked at US. However, solid intelligence states that after Chinese New Year, there will be an enormous amount of containers on their way. The calm before the storm!

For more information on Supply Chain & Warehouse Space anywhere in the U.S. or Canada, please contact Kim McCloud, Director of Business Development, Office: 414-570.2281 / Cell: 414.870.2727, or contact us here.