1:00 13 September 2021
Post by: WBJ

Supply chain disruptions are worsening but can be temporary

As experts note, disruptions in global supply chains, which have been visible for months, have only deepened in recent weeks. Problems with delays in deliveries, rising transport costs, or the shortage of key parts affect a whole range of sectors – from semiconductor and car manufacturers, through textile and furniture manufacturers, to the food industry.

Mobility restrictions related to the Delta SARS-CoV-2 variant disease in Asia have slowed manufacturing operations in Japan, South Korea, and China. In the first half of August, exports of footwear from Vietnam fell by 42 percent y/y, and the global semiconductor supply crisis forced manufacturers such as Toyota, Nissan, Ford, and General Motors to cut production.

"Toyota, for example, has cut production planned for September by 40 percent," UBS analysts noted.

According to them, however, these problems are not serious enough to stem the global recovery for three reasons. A supply chain disruption in Asia is likely to be short-lived, and the latest figures show companies are coping with the problem.

(Business Insider

supply chain

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