Corona Virus & Supply Chain Disruption

The stock market was not too kind today because of fears over the Wu Tang virus. In particular, many of the major corporations are freaking out over the supply chain disruptions that are occurring because so much stuff is made in China. I did a thread last year or so asking what could potentially set off another recession or economic meltdown. Maybe this is it.

One thing is becoming clear though. The US has really put itself and industries in a bind relying on China too much for manufacturing. I've long felt that having large US corporations outsourcing manufacturing to China is not good strategically. Sure, it may help the bottom line, but once you cross a certain point, China then has our economy held hostage since we can't make anything anymore. Would the US be able to ramp up production like we did in WWII now with our manufacturing base all but outsourced overseas?

Just wondering if one of the good things about this outbreak may be companies (and the US policy makers) starting to want to move their supply chains back to the US. I happen to catch a White House official a few minutes ago mention that they are focused on bringing supply chain back to the US. Maybe the bigger conspiracy is this is the catalyst to do so....

Anyway, just figured I throw it out there for discussion.

a reply to: Edumakated

Well, one thing the United States better act on, is to increase the manufacture of antibiotics and drug ingredients that are needed in the States. Most of these drugs/ingredients are manufactured in China. If China decides to stop exporting these to the US, our hospitals and clinics would be screwed. Also, what if China starts manufacturing these drugs and ingredients with contaminants? Can't trust China one bit, so we better step up our game in this department, sooner than later!

originally posted by: shawmanfromny
a reply to: Edumakated

Well, one thing the United States better act on, is to increase the manufacture of antibiotics and ingredients that are needed in the States. Most of these drugs/ingredients are manufactured in China. If China decides to stop exporting these to the US, our hospitals and clinics would be screwed. Also, what if China starts manufacturing these drugs and ingredients with contaminants? Can't trust China one bit, so we better step up our game in this department, sooner than later!

Exactly. We already know China is shady as a mofo, so why allow ourselves to be so reliant on them? I was reading an article where P&G said they have like 17,000 products that are likely going to be affected. They have 387 suppliers across China.

It shows that our countries economy, a consumer based economy, is not a secure type of economy. We need to make the stuff we need in our society for our society to be secure. By making every country dependent on other countries we risk a mass economic disaster, how can one country help another if all of the economies collapse?

The people who set this stupid system up did not think things through, our economy and the economies of too many countries are risky. If China shut us off, they could effectively colapse our economy, we can still be friends and still have secure economies. Think about that. We are causing harm to China's people by making them supply us because there are way too many factories there. We are not helping their people, we are poisoning them.

We wont be making much of anything here once it spreads across the US. As far as Im concerned, we are right behind them waiting for this to hit. Were I work, all employees punch in with their fingerprint, then out at the end of shift. I warned them 2 years ago that was going to spread germs and virus. Many of the guys got real sick last month. Im getting ready to start carrying disinfectant with me. There is one reported wuflu case just blocks from here, so I presume there are more.

I think the market will take a bad dump, and we may start shutting down schools stores, and businesses sooner then later.
The President better be paying close attention to this mess

originally posted by: Edumakated

originally posted by: shawmanfromny
a reply to: Edumakated

Well, one thing the United States better act on, is to increase the manufacture of antibiotics and ingredients that are needed in the States. Most of these drugs/ingredients are manufactured in China. If China decides to stop exporting these to the US, our hospitals and clinics would be screwed. Also, what if China starts manufacturing these drugs and ingredients with contaminants? Can't trust China one bit, so we better step up our game in this department, sooner than later!

Exactly. We already know China is shady as a mofo, so why allow ourselves to be so reliant on them? I was reading an article where P&G said they have like 17,000 products that are likely going to be affected. They have 387 suppliers across China.

The reason we depend on China is because the Yuan is pegged to dollar 6 to 1 so it means manufacturing in China is 1/6th the cost of manufacturing in the United States. How our government sold us out to China by allowing unfair currency manipulation is beyond me. It's like our politicians work for foreign countries.

a reply to: Edumakated

And I heard on the news today, it was a government guy, that China nationalized the 3M plant in China....and nothing made there is coming here.
Cannot find a link for it anywhere ATM.

originally posted by: dfnj2015

originally posted by: Edumakated

originally posted by: shawmanfromny
a reply to: Edumakated

Well, one thing the United States better act on, is to increase the manufacture of antibiotics and ingredients that are needed in the States. Most of these drugs/ingredients are manufactured in China. If China decides to stop exporting these to the US, our hospitals and clinics would be screwed. Also, what if China starts manufacturing these drugs and ingredients with contaminants? Can't trust China one bit, so we better step up our game in this department, sooner than later!

Exactly. We already know China is shady as a mofo, so why allow ourselves to be so reliant on them? I was reading an article where P&G said they have like 17,000 products that are likely going to be affected. They have 387 suppliers across China.

The reason we depend on China is because the Yuan is pegged to dollar 6 to 1 so it means manufacturing in China is 1/6th the cost of manufacturing in the United States. How our government sold us out to China by allowing unfair currency manipulation is beyond me. It's like our politicians work for foreign countries.

So you finally swallowed the Red Pill? Trump kept talking about China manipulating their currency and trying to bring our manufacturing home or implementing tariffs to make fairer trade?

Asking for a friend.

I recall again that doc I saw on Nat Geo about different kinds of crises and how to survive them. They had on a panel of experts talking about how to survive, and the one thing they all agreed on was that localization and the ability to be localized and as self-sufficient as possible was key determinant.

Not a one liked the trend toward globalization and global supply chains.

We don't need China. It will suck but most of what they provide is junk anyway. Completely worthless crap that is not needed. If it is truly needed the US could ramp up in months barely flinching. They are way more dependent on the US.

I went to a Mardi Gras parade over the weekend. All the crap, beads, hats other junk was all made in China. Worthless crap that if we did not have it so what. Still had a great time without that crap.

a reply to: visitedbythem

The President better be paying close attention to this mess

How, with twitter? And Campaigning in India?

originally posted by: olaru12
a reply to: visitedbythem

The President better be paying close attention to this mess

How, with twitter? And Campaigning in India?

Yes. Very true. Since it's a 3 month journey via tall boat and another 2 months over land on horseback to get a message to India there is no possible way he might stay informed from abroad. If only they would finish that damn transatlantic telegraph cable.

originally posted by: olaru12
a reply to: visitedbythem

The President better be paying close attention to this mess

How, with twitter? And Campaigning in India?

I know you don't like him, but we may be fortunate having him in office during the trying times that are appearing to be knocking on our front door

Manufacturing will not be returning to the US until, and unless, “capitalism” (by which I mean the interests and profits of the wealthiest versus the needs of the common citizens) is replaced by conscience.

Which is to say; Never.

As long as corporations can find a less expensive source for their products outside the US, their shareholders will demand that nothing is ever “Made In the USA”, again.

Europe is more responsible for the U.S.'s manufacturing fall, actually according to some experts I've spoken to ... but China does have more of our critical infrastructure, electronics, basic ingredients and sundries than is prudent... prudent for the U.S., anyway.

I see it as a mass failure of leadership and planning, but hopefully it isn't a base, short term cash grab and is rather some long term 3d chess plan ... of some convoluted, hard to glean type a lowly plebeian couldn't conceive of.

My industry is already in transition to other areas Chinese knock offs sold on the internet was/is killing brick and mortar stores. On social occasions and bridal apparel, some companies are taking later deliveries than usual, but if its time-sensitive there is no recouping that. Luckily most of our manufacturers had inventory on hand, but long term US and Canadian companies are looking to eastern Europe, Malaysia, Vietnam and yes even India to get goods manufactured, ditching China. There will be growing pains but overall it's good for the industry. Other industries might not be so easy. I would love to get it back where it is more domestic when I started in the '80s worked for a company in LA, employed 200 people and could manufacturer all we could sell. Good Product quick deliveries, then they started ordering from China and the business changed and they couldn't adapt fast enough and went belly up. I imagine gonna see a bit of that now too, already are and that was before this Corona Virus. Stores are more than a little concerned about getting goods from mainland China taking extra precautions, but even then some customers are canceling orders

Been thinking about that. I'm nowhere near any of the coasts and I noticed one of our local stores we shop at has noticeably diminished stocks of many items compared to normal (been shopping there long enough to know what's normal there). I suspect anything that's cheap and made in China is gonna get scarce soon.

Now how stupid does the elites feel now? knowing everything is produced in China

Perhaps China planned it all along

Release bio weapon, Contains it themselves in Wuhan, while the rest of the world sinks withholding everything needed to fight the virus

Scary times indeed

What was that saying about selling capitalists the rope to hang themselves?

a reply to: Edumakated

America First and Americans First.

a reply to: Edumakated

I work for an IT company here in Australia and all of our account managers are currently working with clients regarding hardware purchases and implementations on the basis that there is a finite amount of stock available indefinitely.

Certainly not any cause for concern (God forbid people use a 2015 laptop for another few months!) but is my first hand reference to the supply chain issues.