If you thought inflation was bad now....'Everything is halted'

[Sogo]

Last edited Wed Apr 27, 2022, 02:55 PM - Edit history (1)

The picture with this article says it all.... (If the picture comes through, it's thanks to mahatmakanejeeves....)



https://www.washingtonpost.com/business/2022/04/26/shanghai-lockdown-supply-chain-cars-electronics/


'Everything is halted': Shanghai shutdowns are worsening shortages

Abha Bhattarai, (c) 2022, The Washington Post
Tue, April 26, 2022, 5:38 AM·6 min read
Thousands of air fryers are stuck in factories, warehouses and ports in central China, where shutdowns have stalled millions of dollars worth of inventory for Yedi Houseware, a family-run business in Los Angeles.

How quickly those backlogged appliances make it to the United States could have wide-ranging implications across the U.S. economy, as domestic manufacturers and retailers brace for another round of disruptions from recent covid-related shutdowns in Shanghai, China's largest city. White House officials are paying close attention to the disruptions to monitor the potential impact on the U.S. economy.

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"Things are getting crazy again," said Bobby Djavaheri, the company's president. "Everything is halted. There are closures this very minute that are adding to the supply chain nightmare we've been experiencing for two years."

Other executives are dealing with similar scrambles as the situation in China appears to change every day, sweeping up many different sectors.

Widespread covid outbreaks in China have bought entire cities to a standstill and hobbled manufacturing and shipping hubs throughout the country. An estimated 373 million people - or about one-quarter of China's population - have been in covid-related lockdowns in recent weeks because of what is known as the country's zero covid policy, according to economists at Nomura Holdings. There are also fears that new lockdowns could soon take hold in the capital city, Beijing, escalating the threat to the global economic recovery.

Anxiety over new disruptions has already caused the Chinese stock market to fall sharply, weighing on U.S. stock indexes as well.

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https://www.washingtonpost.com/business/2022/04/26/shanghai-lockdown-supply-chain-cars-electronics/


............

Bottom line: Bring manufacturing back to this country!

[Chipper Chat]

1. I bought a Whirlpool refrigerator for $315 in early 2020

At lowes. Today the same frig is $625.at lowes.

[MissB]

6. Yeah I bought almost all my appliances

at the end of December 2021, anticipating continued supply issues and increased prices.

Only the range is not ordered but I expect to do that order in the next day or two.

[rockfordfile]

9. That's because pos republicans and covid.

[mahatmakanejeeves]

2. You have to chip away text at the front and at the back.

[Sogo]

3. Thank you!

[mahatmakanejeeves]

4. Leave out ...

At the front, leave out

https://www.washingtonpost.com/wp-apps/imrs.php?src=

and at the back leave out

&w=767

and what you're left with is (not including the hyphens I've added to keep the picture from loading)

h-t-t-p-s://arc-anglerfish-washpost-prod-washpost.s3.amazonaws.com/public/DVGPTPWEJYI6ZDH7GOYFT5GBW4.jpg

[Celerity]

8. +1

[MissB]

5. I've locked down almost every part of my kitchen remodel

Appliances are mostly in and being held. Cabinets are made in the US and seem to be in production. My sink is at will call at the store, my hardware is already in my house in a box and my countertop slabs are paid for and sitting at the stone yard.

The only wildcard is the range, which is made in the US. They seem to still be keeping their 12 week lead time. Only a bit worried about that one.

I assume we will start seeing the ripple effect in this.

[edhopper]

7. And they will still say

It's Biden's fault.

[orwell]

10. China is sealing its own fate...

...supply chain unreliability will be unacceptable to US sellers.

Mexico and other Asian countries like Vietnam will profit from China's Covid blundering.

[Tickle]

11. Amen to your post!

This should be a huge eye opener to bring some stuff back here

[belpejic]

12. Time to rethink supply chains

I don't think we're there quite yet--from what I can tell most reasonable experts think these bottlenecks will clear once COVID dies down--but the uncertainty premium that pandemics and wars cause will at some point exceed the benefits of having a just in time, globalized supply chain system.

I'm all for moving back as much of that production to the U.S. as possible. And having as many of those shops be unionized as possible. We can't have any of that, though, if the completely clueless MAGAs and the principles, morals, and ethics-free Moscow Mitches regain power.

[keep_left]

15. One of the worst problems is in technology. We make almost no semiconductors at all...

...in the US anymore. I know that the Far East domination of semiconductor manufacture got to a point a few years ago where a lot of the 3-letter agencies in the US banned any Chinese-origin computers (e.g. Lenovo). This abdication of manufacturing was largely a choice by the US ruling class. There has been a lot of really destructive policy over the years: military Keynesianism, 1980s hostile-takeover M&A insanity, etc.

Of course, this problem is seen through the economy writ large, not just in technology.

[hlthe2b]

13. We may just have to learn to live with a little inconvenience. Some could really benefit from that,

in my honest opinion.

[Hugin]

14. Hear, hear!

Necessity is the mother of invention. (and innovation - me.) Which is also very good for the economy.

Now for my mea culpa. I’ve ordered two items over the last couple of weeks originating in China. One of them manufactured in Shanghai proper. I received both of them ahead of the projected transit time and within four days. Both the delivery driver and I were surprised. Yes, it’s true that I could have built the unit for myself from parts, but, not in four days. I find myself skeptical of the extent of the “shutdown” as it is reported.

[roamer65]

16. I think it's good for folks to get a feel what it was like for our grandparents in 1942-1945.

No new cars from early 1942 to very late 1945.

Gasoline rationed to 4 gallons per week for most people.

Sugar, tires and other high demand items rationed as well.

[Renew Deal]

17. Maybe this will clear up ports and trucks in the US.

That's good news. But then dockworkers and truck drivers will get laid off. Some of them will never come back and the US will not be able to keep up.

I guess we can hope this doesn't happen.

[hatrack]

18. The modern industrial supply chain is seamless and unstoppable!

Unless and until, of course, any number of utterly predictable and just-a-matter-of-time unavoidable things happen.

For my part, I'm waiting breathlessly for Thomas Friedman's next conversation with his cab driver in Trinidad/Qatar/Montreal/Lagos so that he can explain just how simple all these complex things are.