More Reasons for Re-Shoring

According to a recent article in Forbes, manufacturers that were intent on reducing their foreign reliance after COVID-19 supply chain disruptions have made little progress four years after the start of the pandemic. And now there is a new reason to be concerned.


A double whammy, some say, may be headed our way due to geopolitical and climate change problems. Shipping has been disrupted in the Suez Canal, where Houthi rebels are attacking ships and causing operators to make the longer and costlier trip around South Africa. The situation is made worse by a prolonged drought in Panama that has caused backups of 50 ships waiting to enter the Panama Canal.


New Mexico manufacturers receiving goods from Asia are experiencing fewer problems since West Coast ports cleared their pandemic-related backlogs long ago. But according to the Wall Street Journal, the global situation is poised to raise prices worldwide. The article notes that supply chain disruptions are modest compared to those of 2020-2021. “But as more businesses return to pre-Covid practices of keeping minimal inventories and rely on timely deliveries, they are more vulnerable to disruptions if bottlenecks at the two canals continue.” 


Concerned about your company’s potential vulnerabilities? We can help. Call us at 505-262-0921 to speak with an Innovation Director and start the discussion.