Highly interconnected, the world’s supply chains are susceptible to shocks and disruptions that may not even happen in close proximity to the actual manufacturing, sourcing or distribution of goods. This was immediately obvious when China’s manufacturing centers were among the earliest to be impacted by the COVID-19 pandemic in early 2020, and it could happen again as the Russia-Ukraine conflict persists.
In “The Russia Ukraine War Could Have Dire Impacts On Global Supply Chains,” ARC Advisory Group’s Steve Banker writes about the diverse ways that this conflict could impact global supply chains. Some of the key impacts could include (but aren’t limited to) higher transportation costs, rising electricity rates and interruptions to the commodity supply chains that companies worldwide rely on.
