US Auto supply chain recovery from tsunami related glitches and growth impact

A Wall Street Journal article (July 27, 2011) links the impact of the tsunami, and part shortages, on US auto production (a drop of 5.9 %) and thus dampened growth of the US economy in the second quarter 2011 (1.9 %). But as supplt chains recover, firms such as Ford claim to increase production 7.5 %. This production surge, and consequent supply chain impact is expected to potentially increase US growth to 3%, given the auto industry’s projected 6 % share of US total employment.    Is US growth now so closely tied to supply chain adjustments, with few inventory buffers, that it reflects the industry production ?  Given the link between the Japanese tsunami and US growth, will improving supply chain resilience require more dispersed production  ? Should product designs have multiple versions, with associated sourcing, to accomodate such unforseen shocks ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

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