White Water Boat with cargo with "Houston Express"

Manufacturers Who Cut Inventories And Profit Margins To The Bone Are The Most Vulnerable To The Current Crisis

In order for western manufacturers to remain competitive, many components are sourced from China. When China delays manufacturing, western manufacturers’ ability to finish their products and deliver them to market is impeded. To compound that problem, inventories are typically stockpiled for just 15-30 days due to cost-saving inventory management methods such as “just in time delivery”. That spells double trouble for manufacturers and consumers alike.

Read more about how the current crisis is impacting global supply chains at:
https://www.theatlantic.com/ideas/archive/2020/03/supply-chains-and-coronavirus/608329/

(Photo credit: Julius Silver)