I continuously get the following question: When will we be done with the supply chain issues we have been experiencing since the beginning of COVID? My answer is usually: I really don’t know, but we haven’t seen the end of it. Experts are now saying that the worst is yet to come.
Our reliance on China has become more apparent than ever before. My thinking re: this is that food shocks were a big problem for quite a few areas in the US - the way this was prevented in most places was by means of having supply chain diversity which ultimately buffered many cities against food shocks. To buffer the US in such a way and ensure we don't end up like a food shocked city, we should try and diversify our international supply chains. The only question that remains is how feasible a move away from Chinese-based supply chain would be in the first place... Regardless, exceptional and thought-provoking article as always!
As a consumer I'm starting to really double down on "digital stuff" instead of physical, e.g. audio processing through software instead of equipment, etc. to avoid exposure to supply chain issues.
Our reliance on China has become more apparent than ever before. My thinking re: this is that food shocks were a big problem for quite a few areas in the US - the way this was prevented in most places was by means of having supply chain diversity which ultimately buffered many cities against food shocks. To buffer the US in such a way and ensure we don't end up like a food shocked city, we should try and diversify our international supply chains. The only question that remains is how feasible a move away from Chinese-based supply chain would be in the first place... Regardless, exceptional and thought-provoking article as always!
Excellent! This is exactly the type of thinking we promote.
Excellent article Gad! Do you anticipate in the medium-term there might also be over supply issues post-Covid?
I think it will take a few years post covid, but yes. Over capacity.
As a consumer I'm starting to really double down on "digital stuff" instead of physical, e.g. audio processing through software instead of equipment, etc. to avoid exposure to supply chain issues.