Manufacturing supply chains stretch in aftermath of Japanese disaster
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The earthquake, tsunami and subsequent nuclear disasters in Japan are raising concerns that already stretched global supply chains – especially in Europe's automotive sector – will lengthen yet further as demand outstrips supply.
Manufacturing sector economist Chris Williamson warns that the Japanese disaster has raised concerns about global supply chains, especially in relation to shortages of auto parts and electronic components. Current data show that these anticipated delays are set to exacerbate an already serious situation in Europe, where purchasing managers reported near-record supply chain delays in February, even before the earthquake and tsunami struck, he says.
"European auto manufacturers have been especially hard hit, reporting suppliers' delivery times to have lengthened to the greatest extent in at least 13 years as demand exceeded supply."
German producers experienced the highest incidence of supply delays in February, followed by the Netherlands, Austria, France, the Czech Republic and the UK. In contrast, there was a relatively low incidence of delays in many emerging markets, especially in Asia. The lowest incidence of delays was seen in South Korea.
