EDITOR ’ S CHOICE SUPPLY CHAIN ISSUES CONTINUE
3DPRINT UK
Some thoughts on meeting the challenges head-on
By Nick Allen , Managing Director , 3DPRINTUK
Many commentators have recently been discussing the supply chain issues that bedevil the world in the backdraft caused by the COVID-19 pandemic , and it seems as if these issues are likely to precipitate a sea change in the way that many companies do business .
Very early on in the pandemic , in the Spring of 2020 , and during the almost global economic shutdown , the vulnerabilities of international supply chains were thrown into vivid relief . It became clear that very many businesses had become accustomed to and reliant on cheap international supply of goods and parts and components exactly in the quantities and at the precise times required to run businesses efficiently . Lockdowns , almost at a stroke , destabilised this structure , which was further compounded by the almost farcical blockage of the Suez Canal earlier this year for six days . This series of events has left many companies more aware than ever that they are massively vulnerable to the vagaries of international supply chain problems .
As a result , conversations around this issue have changed direction . The balance between cheap international yet vulnerable supply chains versus more expensive domestic but more reliable supply chains is beginning to shift . Perhaps the number one priority is no longer cheapest is best , but rather the continuity of supply of products has equal if not greater importance .
Today , the shift towards the latter priority is gathering even more momentum as the prices of goods from China are now rising significantly , eroding yet further the argument for cheap supply of goods . Like the rest of the world , China is struggling in the economic headwinds caused by the COVID-19 pandemic . Power supply issues and costs in China are spiralling ( as elsewhere ) and this has led to an unprecedented downturn in growth rates , higher inflation , and a general feeling of economic unease .
So , the question left hanging in the air is : if their goods are no longer that cheap , why would anyone chase Chinese supply and expose themselves to international supply chain issues .
28 PECM Issue 54