What Happens When the China Supply Line Breaks?

What Happens When the China Supply Line Breaks?

Hello again, Ken Baxter here in sunny Las Vegas, NV. If you have been following me on any of my social media you know of my passion to help bring more manufacturing jobs back to America. Our president, Donald Trump has been successful in putting Americans back to work by bringing some of our nation’s great factories back home though we obviously have a long way to go.

A wise person once said, “Sometimes you can’t just TELL the public the truth – you must SHOW them. Only then will people find the will to change.” We have all heard stories about the amount of merchandise the larger retailers in America are importing from China; the evidence of this has never been more apparent if you visit a store today. 

"Sometimes you can't just TELL the public the truth - you must SHOW them. Only then will people find the will to change."

Anon

The pictures below were taken the week of May 4th, 2020 in the merchandise section a big box retailer in Nevada. Spokespeople for the company have never confirmed the percentage of merchandise that is imported from China, but as you can see by the photos it is substantial.

Consumers may realize China is a source of many types of finished goods including bicycles, small appliances and home linens but also parts and raw materials necessary in American manufacturing. In fact, any hiccup not only affects Chinese operations, it affects many countries. Automakers have already had to slow or shut down factories globally due to supply shortages.

Even more frightening is the affect on medical supplies. According to a report by Breitbart news, “China produces and exports a large amount of pharmaceuticals to the U.S., including 97 percent of all antibiotics and 80 percent of the active ingredients used to make drugs here. Penicillin, ibuprofen, and aspirin largely come from China. The combination of supply chain disruptions and increased demand at hospitals if coronavirus spreads to the U.S. could prove devastating.”

An American company, 3M, produces many of the many of the essential N95 face masks needed by frontline medical workers in its China facility. What the manufacturing giant did not expect as it prepared to ship millions of masks to the United States, was the Chinese Communist Party declaring medical masks an essential government resource by nationalizing the company, forbidding the shipment to the US or any country. The video below explains the danger to the supply chain on which we are so dependent.

 

As you can see the American supply chain right now depends on China for the most mundane of product such as bicycles and small appliances but also for manufacturing parts and critical, lifesaving medications and personal protective equipment (PPE). This should be an eye opening experience for many companies who will hopefully bring their companies and manufacturing jobs back to our great country!

If you would like to discuss I would love to hear from you. Leave a comment below or contact me directly at rocketman@kenbaxter.com

As you can see the American supply chain right now depends on China for the most mundane of product such as bicycles and small appliances but also for manufacturing parts and critical, lifesaving medications and personal protective equipment (PPE). This should be an eye opening experience for many companies who will hopefully bring their companies and manufacturing jobs back to our great country!

If you would like to discuss I would love to hear from you. Leave a comment below or contact me directly at rocketman@kenbaxter.com

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