COVID Lockdown In China Continues To Impact Tennessee Businesses
Photo Credit: China News Service / CC
The Tennessee Conservative [By Jason Vaughn] –
As the most recent COVID lockdown in China continues to impact supply chain operations, Tennessee businesses, along with businesses across the country, are feeling the impact of those disruptions.
It has become increasingly more difficult to get shipments out of China, and delivery times have continued to increase as businesses wait for needed parts and products.
“That’s leading businesses to strategize toward shorter supply chains, more production closer to the point of use,” said Andy Borchers, Associate Dean of Lipscomb University’s College of Business.
“I think companies are learning that they have to have resilient supply chains,” Borchers continued. “They have to have multiple in place. So, if you’re Apple and you want to get phones, you don’t just get them from China. They now are trying to see, well, maybe it should be China AND India.”
V. Alexander is a Memphis-based international cargo transport company that also has offices in Nashville and Knoxville. They report deliveries taking up to twice as long to arrive from China.
“It may have taken in 2018, 2017, 35 days to get from Shanghai to a Nashville warehouse and it could be double that now just because of the backlogs that you experience at major milestones in a supply chain,” said Daniel Hallock, V. Alexander’s assistant vice-president of Business Development.
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While shutdowns across the globe at the start of the pandemic decreased demand for items, this time, other markets continue as only China experiences a lockdown. The operation of those countries means that demand is not going down this time.
“If you disrupt one area of the supply chain in an animal such as that – I mean, now we’re talking about a massive trading partner – it’s going to cause ripple effects across other areas, right?” Hallock said.
The government in Shanghai has stated that it will begin “white listing” businesses, meaning they will hand pick businesses from specific sectors that they deem most important for the economy and will exempt them from lockdown restrictions.
They did not give specific qualifications that would allow a business to make the list, but stated that they were working on lists for the automobile, semiconductor, consumer electronics, machine toolmaking, agricultural equipment, food and pharmaceutical sectors.
About the Author: Jason Vaughn, Media Coordinator for The Tennessee Conservative ~ Jason previously worked for a legacy publishing company based in Crossville, TN in a variety of roles through his career. Most recently, he served as Deputy Director for their flagship publication. Prior, he was a freelance journalist writing articles that appeared in the Herald Citizen, the Crossville Chronicle and The Oracle among others. He graduated from Tennessee Technological University with a Bachelor’s in English-Journalism, with minors in Broadcast Journalism and History. Contact Jason at news@TennesseeConservativeNews.com
This is another reason products should be Made in America or at least a non Communist country!
Insane that trade with a communist country was ever initiated! Walmart leader in this. Sam Walton would be mortified. Against everything he stood for. All in the name of profit for his greedy kids.