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Friday, 03 August 2018 16:54

Continuity and the supply chain in a geopolitically unstable world

This article by Clinton Jayne looks at individual organizations around the world and what their supply chain may have to endure during this period of geopolitical instability, where trade arrangements seem to change daily and the long term impact of potential arrangements such as Brexit are largely unknown and not transparent.

I am not an economist and make no attempt to look at national economies and their individual circumstances. I also do not consider myself a politician (a fact I am immensely happy about) and do not look at political imperatives that drive the trade uncertainties. The point of this article is to look at individual supply chain circumstances and what organizations may need to do to ensure their survival and longevity.

Those expressing concerns

So, having explained the context let’s consider some of the known outcomes (taken from news broadcasts) thus far.

Airbus recently completed a study of their UK circumstances and the possible impact of Brexit and the customs union. The factory (employing 14,000 people) that produces wings and relies on the supply of aluminum and other products, not all of which are produced in Britain. I have no idea what their detailed findings are but their warning to the politicians indicate that the impact could be very significant.