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Business costs will rise for those who are sourcing some or most of their raw materials or goods from China. But it’s already happening as wholesalers, distributors, and importers source alternatives from other countries and place tentative orders. For example, leather goods, woodcrafts and furniture from Myanmar and Indonesia.
Sourcing from far-flung countries such as China is leading to growing uncertainty about the actual supply of purchase orders. Integration with warehouse mechanisation and production equipment guarantees that the optimal plan will be executed in practice. Marshall Islands. Martinique. Mauritania. Micronesia, Federated States of.
We view such an indicator as clear evidence that sourcing for lowest cost manufacturing is again apparent among multi-industry supply networks. This index is a compilation of seven ASEAN nations- Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand , and Vietnam. Contrasting Reporting for U.S. compared to 49.1
The bottom three were listed as Poland , Taiwan and Myanmar. Falling sales have not only led increasing numbers of factories to cut production but have also meant warehouses are filling with unsold stock to a degree unprecedented in the survey’s 25-year history.
As a contrast, Bloomberg recently reported that many warehouses and industrial parks in China are grappling with a surprising slowdown in business activity. Authors pointed to China ’s consumer sector fueling sharp output growth while exports reportedly grew at the slowest pace in six months.
It even took authorities some time to recognise the vital importance of warehouse logistics, supply chain continuity, truck drivers and other transport operators. Arising from the pandemic is risk diversification i.e. reducing sourcing risks from China. SUPPLY CHAIN DISRUPTION—Respond, Recover and Regrow. Diversification.
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