The raw materials crunch [business - materials]

Abstract

Amid a global "perfect storm" of raw material shortages and supply chain disruptions, businesses worldwide are facing significant challenges, leading to increased costs and delays in delivering goods. The causes of these issues are complex and varied, ranging from hyper-competition and customer demands to climate change and geopolitical tensions. The article identifies different tiers of issues that affect supply chains, from the direct impact of war or pandemic-related closures on raw materials to indirect effects, such as rising fuel prices that impact power supply. The bullwhip effect, where a sudden surge in demand exacerbates shortages, is another issue affecting the industry. The article suggests that businesses need to adapt to survive, with suggestions ranging from building resilient supply chains to looking for alternative raw materials.