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Supply Chain Nightmares Return; Union Strikes at 36 Eastern & Gulf Ports

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The supply chain stressed by port strikes
Cargo ship loaded in New York container terminal at night viewed from Elizabeth NJ

On Tuesday this week, at precisely 12:01 a.m., 45,000 dockworkers in 36 ports up and down the East Coast and throughout the Gulf of Mexico went on strike. That sentence should send a shiver down your spine because, yes folks, a new supply chain nightmare has begun. This possibility has been on my radar screen for a couple of weeks, but I hesitated to write about it because I was hopeful that negotiations would yield a resolution that would prevent this nightmare from happening…and then I would have been accused of fear mongering.

But negotiations did not yield a solution…so here we are!

See more on a new supply chain nightmare

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Supply Chain Recovery Threatened by New COVID Lockdowns in China

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The supply chain recovery threatened w/new China COVID lockdowns
Some of the 21 million residents of Chengdu, China submitting to daily COVID testing [EPA/Shutterstock, NY Times]

Like being forced to watch a rerun of a movie you never liked in the first place, China is back to closing major cities around the country as a new round of COVID infections has emerged. China continues to maintain a “zero-COVID” policy of government-ordered aggressive measures designed to stamp out any new outbursts of coronavirus infections. But the impact of this policy is disastrous to the local and global economies – threatening to snuff out the recent signs of a recovery in the supply chain.

See how China’s shutdowns leave the supply chain recovery threatened

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Crestron Supply Chain Town Hall Updates Frustrated Dealers; Did It Help?

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Key executives address the Crestron Supply Chain Town Hall
Brad Hintze, Dan Feldstein, Dan Brady

This week, Crestron Electronics held a special Supply Chain Town Hall meeting with their dealers to conduct a deep dive into the root causes of their delivery delays, suggest what actions dealers can take, and offer a preview of what to expect in the future. The action was taken, the company says, in the name of transparency – a noble goal. But some dealers are asking what took so long – we are now 2½ years into supply chain issues and things don’t seem to be getting any better at Crestron. Or are they?

See more on the Crestron Supply Chain Town Hall meeting

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Foxconn Raises Outlook for Year, Cites Improving Supply Chain Situation

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A Foxconn factory

Hon Hai Precision Industry Co., better known as Foxconn, the world’s largest contract manufacturer, surprised many on Tuesday when they announced they were raising their outlook for the quarter and for the year based on what they say is improving supply chain stability in China. The company is one of the largest suppliers for many companies, including Apple, Inc.

See more on what Foxconn is seeing in the supply chain

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In Note to Dealers on Supply Chain, Crestron Says It’s in a ‘Better Position’ Than Ever

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Crestron at Expo 2015

For the last two and a half years, many industries have struggled with supply chain issues – especially Tech. During that period of time, I’ve heard over and over from integrators who were furious at one company or another for failing to deliver on their open orders. I’ve heard expletives hurled at pretty much every brand in the industry…including Crestron.

Now, in a letter to dealers from Crestron Chief Operating Officer Daniel Brady, dealers are being told that the company is “in a better position now than ever before.”

See more on Crestron’s letter to dealers

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Sonos 2nd Fiscal Quarter Sees Revenues Grow, But Profits Hit by Supply Chain

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Sonos reported on Wednesday that they had a strong second quarter fiscal 2022 result with good revenue growth. In the case of revenues, the company notes that they continue to track toward its annual revenue guidance of $1.95 billion – to – $2.0 billion. However, the company admitted that its profit margin took a hit as supply chain issues continue to bedevil it (and the rest of the industry) as well. They cut their forecast for profits in 2022.

See more on the Sonos fiscal 2022, 2nd quarter financial results

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Smart Savant 3-Point Strategy to Beat Supply Chain Shortages and Fill Orders

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Savant President JC Murphy

I’m not sure that anyone in Tech has done more than Strata-gee to report on the issue of the failing supply chain and its at times ruinous impact on our industry. My very first report on the supply chain – AKM Fire: 2020 was Almost Over, Then Disaster Struck Again – is the second most-read story I’ve ever written in my life. I had always assumed that the issue was so big that everyone was affected equally.

But then I discovered, almost by accident, that one company has a clever strategy to beat the shortages. That company is Savant, and their strategy is equal parts brilliant…and a bit insane.

See how Savant has mostly beaten the supply chain shortage that bedevils other brands…

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What’s Delaying New Chip Fabs to Reinforce the Supply Chain? Yep…The Supply Chain

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chip shortages bedevil the supply chain
[Photo: AFP/Jiji]

Ever since supply chain shortages hit many industries, particularly in relation to the availability of integrated circuits or chips, there has been a massive scramble to increase capacity and to build new chip fabricating facilities (fabs) or factories. There has been a series of announcements from huge companies like Intel, Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung, and others launching massive multi-billion projects to add more chip production facilities.

There’s just one problem…the equipment they need to build these facilities are themselves delayed.

See more on the supply chain shortages delaying new factories to help the supply chain

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Sputtering Supply Chain Takes Another Hit as China Forces Factories to Close

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Shutdowns in Shenzhen China threaten the supply chain
Shuttered buildings in Shenzhen, China on Monday [Photo: Chinatopix, via Associated Press]

Here we go again! Yet another major blow has been dealt to the supply chain, this time from another round of COVID-19 hitting China, forcing lockdowns in many critical areas of the country – including Shenzhen. You may or may not know that much of the electronics goods manufactured in China come out of the Shenzhen region – so we all have a direct connection to the impact of this development. Add to this, new reports of container costs rising again and transportation disruptions from the Russian invasion of Ukraine. What’s next?

See more on the latest supply chain disruption

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Fragile Supply Chain Takes A Direct Hit From the Russian Invasion of Ukraine

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supply chain issues affecting ocean freight

An analysis of our still-fragile supply chain by various experts in the field concludes that the Russian invasion of Ukraine will impact the global supply chain in many damaging ways. We are likely to face more shipment delays and cost increases for both the immediate future, and for a period of time that will extend until well after the invasion concludes.

See what supply chain experts are seeing from the Ukraine invasion

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