posted on Oct, 10 2009 @ 08:05 AM
I know it's mostly preaching to the converted, and I'm not telling most of you anything you don't already know, but there are a lot of people who
simply don't think of the chain that goes on behind the manufacture and supply of something.
So, as I explained to a friend a few days ago, I'll give a rough example. You probably already know this, but there are some who just don't consider
it, and it might help them to think outside the box a little.
The making of a leather jacket...
1. Cattle farmer in South America.
a. food requirements.
2. Transport to abattoir.
3. Shipping of leather to India to be tanned.
4. Tanning in India by small company struggling.
a. chemicals needed.
b. And more shipping for those.
5. Shipping to China.
6. Manufacture of Jacket in China.
a. requirement for Cotton.
b. Metal fastenings.
c. More shipping for those too.
7. Shipping of completed Jacket to North America.
8. Arrival of jacket a packaging company.
a. required packaging.
c. more shipping.
9. Transport again from Packaging company to retailer.
Most of these will be experiencing financial troubles. Many smaller companies need financial support through tough periods and they are not being
given it by banks.
They have to cut back on staff, meaning their products or services are delayed.
The transport companies being used are (theoretically) larger the further up the manufacturing chain you go, so the one a major brand uses is probably
more stable than the one a Leather tanner uses. But that doesn't mean the supply of that item is any more stable prior to its completion.
If we assume that most of these companies began feeling the financial hardship a year ago, the affect it will have on the supply of the item will be
delayed by a period. So if the Cattle farmer in South America felt this last year, it could be another few months, or even more than another year
before you notice it.
But this is affecting everything from manufacture, to minerals, to materials... you get the idea.
There are a lot more complex avenues to go down which will in turn affect the supply of everything.
Like I said, most of you know this already, but there are plenty who just don't think about it.
[edit on 10-10-2009 by detachedindividual]