The global supply chain crisis

Global supply chains are buckling, with potentially huge consequences. This is a thread for sharing news, insight, information, experience from the industry you work in, and of course general prognostications on how bad things could be. Storm in a tea cup or the beginning of the end?

Tesco Lewisham was sold out of Crème Fraiche on Saturday evening. Had to put sour cream on my nachos.

Unicorn grocery had no hummus a few weeks back, Chorlton was closer to anarchy than usual.

In all seriousness though, it is mildly concerning, especially on the food / warmth side of things.

^^ ^^^ Lulz

https://am.jpmorgan.com/us/en/asset-management/institutional/insights/market-insights/eye-on-the-market/dude-where-is-my-stuff/

Yeah, jokes aside, I have a real sense of foreboding about the global economy right now.

We've had the chip shortage for ages, driven by increased demand, Covid restrictions and climate change (drought in Taiwan). It just feels that the whole world is on the back foot right now.

<3

Some info on the drought in Taiwan and how it has affected production of chips https://www.bbc.co.uk/news/world-asia-56798308

We are across 8 sites across all of Europe about… 16 weeks behind on every order of plastic*

About 6 weeks behind on rebuy, recycled waste plastic.

So far I still have no idea how even recycled material can be late. There’s a missed shipment of one thing awaiting to happen that collapses the whole deck of cards.

*we make mostly plastic for moulding on medical equipment and lately sheets for anti microbial walls. Not single use plastics.

Global economy doesn't mean diversified economy, in fact I think we're seeing the opposite of that now that things are failing. Manufacturing all the chips in one city in one country, relying on just a few places for gas/petrol etc. is showing how fragile everything actually is.
The only solution is to all start subsistence farming

The only solution is to all start subsistence farming

Have been planting iphones for a few months now, nothing has sprouted yet

Find your nearest Tory MP, they seem to have access to all kinds of magic trees that they deny exist

Manufacturing all the chips in one city in one country,

You make a good point here. Incredible that a couple of years of missed Typhoons in one area can have such a profound global effect.

Over 50% of the world's semiconductors are produced by the same company in the same country.

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Its also pretty depressing that we are so dependent on semicondutors when they are so bad for the environment. Ignoring even the mining required to find the raw materials, the water requirement to make a single semiconductor is horrendous. A 30cm wafer takes about 2,000 gallons of water to make.

I work for a British manufacturing company and we are really struggling with all sorts of shortages and price increases.

Raw materials for castings, copper for motors etc is soaring. We cannot source basic components (MOSFETs, Hall effects, surface mount devices) and what we can source we are having to pay a massive premium on.

We are constantly testing possible alternative components to replace to the previously qualified devices.

We have had to increase our catalogue prices to compensate for this.

We have managed to keep production going at the moment but if things don't improve - who knows?

The only solution is to all start subsistence farming

There'll be a global seed shortage no doubt.

I’m not sure there is a chip shortage, rather a few sectors are being hit hard. It turns out a just-in-time manufacturing system doesn’t work well when it comes to silicon.

I work for a company that supplies the silicon industry and we’re 18 months into record volumes.

Lol.

But also, probably true.

Car makers reliant upon outdated primitive chips:
https://fortune.com/2021/09/17/chip-makers-carmakers-time-get-out-semiconductor-stone-age/

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Exactly this. Cars are becoming more and more reliant on processors for management and control and the automotive industry is conservative and resistant to change.

It’s ripe for disruption, which is partly behind the valuation of Tesla.

Oh, and just in time might work for mechanical components, but it doesn’t really work for processors and software.

Interesting, I didn't know that.

Ros Atkins 5 minute BBC video from the weekend touches on lots of issues

https://www.bbc.co.uk/news/av/business-58743372

Ros does some really good segments, what the news should be