Let’s see how that ‘Just In Time’ supply chain works out, shall we?
Whoa whoa whoa, on demand manufacturing allows us to be agile and utilize LEAN manufacturing to provide maximum value to our shareholders by cutting wages, cutting positions and not investing in a single fuckin lick of infrastructure.
You’d think the world would have learned that lesson during and after COVID lockdowns.
Just in time supply chains are too cost effective for alternatives methods to compete.
They’re cost effective as long as nothing goes wrong. Remember the knock-on effects of one ship blocking the Suez Canal?
Ugh. This is gonna suck.
The Donald Slump ^tm
Trump Slump?
The Donald Slump. Making Recession Great again
You should really file it. Could sell stuff with it.
Coming to an empty shelf near you!
Paywalled
Enjoy
Even the article is demand slumped.
If there’s a lack of demand, that should drive prices down. Probably not enough to cover tariffs.
Prices can’t go below the cost of production and transport.
A lot of goods are on quite small margins. When the tariffs are bigger than the margin the product becomes uneconomic to ship to the US. This is what you’re seeing. There’s less demand for shipping because companies have halted shipments to the US.
Unless they can no longer afford to warehouse them.
Warehouse what? They simply stop production. The shipping containers are a lagging indicator. The production stopped when the orders evaporated.
US isn’t the only market. Likely to see price drops in Europe when supply will outstrip demand, but still maintain a better margin that the US.
At least until production rates adjust.
Other way round the limited market and loss of profit will result in a temporary drop in price and a subsequent steep increase in price or decrease in quality to make up for the loss of profit that happens when the American market shuts down or slows.
