Supply chains worldwide will continue to be caught between politics, economics and ecology in the future. Whether there will be more regionalization or nearshoring remains to be seen. The question will linger: Who will win and who will lose in this increasingly tense competition? [Supply Chain Webinar 2023 - Supply Chain Under Pressure – Logistics Management]
Exports of footwear components - chemicals (adhesives), uppers, soles, insoles, synthetic laminates, etc. - increased by 37% in the first two months of the year, compared to the first two months of 2021 and increased by 13% compared to the first two months of 2019, that is, before the Covid-19 pandemic. [Exportações de componentes para calçados crescem 37% no bimestre – Assintecal]
“Covid lockdowns in China are set to further disrupt global supply chains,” headlines the NYT. A wave of infections from Omicron variants has prompted Chinese authorities to block residents, close factories and stop truck traffic, damaging already worn supply chains.
The footwear sector is in a process of recovery, both in jobs and in factories. In January 2022, the shoe factories of Guanajuato recovered 8,000 of the 15,000 jobs lost at the most critical moment of the coronavirus pandemic. [México: la industria del calzado está saliendo del túnel – Puntodincontro]
The Sourcing Journal reports on further price increases and delays in logistics. Lockdowns across China have created new supply chain uncertainties, but one factor that’s become clear: shippers can expect a rise in rates once restrictions are lifted and operations resume.
Retail sales in Germany declined at the end of 2021, falling sharply due to the increase in coronavirus cases and the reintroduction of restrictions, german statistical office Destatis said. (Germany Retail Sales Tumbled in December Amid Renewed Restrictions – MarketWatch). Sales fell 5.5% from December, after a 0.6% increase in November.
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