July 6, 2023 Publisher’s Letter

Volume 26 | Issue 1

We’re halfway through 2023 and times are, well, interesting. There’s good news and bad news.

Click here to read the complete illustrated article or continue below to read the text article.

Even as U.S. domestic manufacturing is undergoing a resurgence, global conditions threaten supply chains with disruption. Whatever you may feel about the causes of (and solutions to) climate change, the fact is that severe weather conditions, both extremes of hot and cold, cause economic fallout.

First, let’s take a look at the bad news. One of this issue’s feature stories examines the impacts of weather. Last year, there were 18 significant weather events, accounting for losses that exceed a billion dollars. As Jon Davis of Everstream Analytics points out in How Weather Disasters Impact the Supply Chain, “The supply chain is especially vulnerable to the increased rate of weather disasters, which can cause disruptions in shipping and transportation, interruptions in business and production, and damage to infrastructure. Businesses incur capacity constraints, inventory shortages and price fluctuations, along with other consequences.”

Davis says that while you can’t really control the weather, you can proactively respond to near-term risks to minimize potential damage. A similar point is made by Bart De Muynck, Chief Industry Officer at project44, in Navigating the Dry Waters of the Panama Canal. “The Panama Canal’s historic low water level projected for July coincides with peak season shipping, when manufacturers experience high demand for their products… The Panama Canal drought presents significant challenges for supply chains and peak season shipping, including disrupted shipping routes, inventory management issues, rising costs and the need for diversification. It is expected that the situation will only be exacerbated by El Niño heading into 2024 – so it is imperative manufacturers figure out their risk management strategies as soon as possible.”

Now for some good news. Buffalo, New York, once known as a rustbelt city behind the times, has transformed into an advanced manufacturing hub. “To date, Buffalo is home to a $13.2B manufacturing sector, which is the third-largest employer in the Buffalo Niagara economy, comprising 69,167 individuals. And contrary to national trends, the city’s manufacturing workforce is projected to grow by 1.2% in the next five years,” writes Thomas A. Kucharski, President and CEO of Invest Buffalo Niagara, in 21st Century Manufacturing Thriving in Buffalo, NY. The city’s success is a combination of a signature workforce development program, a 0% corporate income tax, low cost hydropower and proximity to Canada. In addition, the Western New York Industrial Real Estate Development Strategy, an initiative intended to help reshape the future economic development prospects of the region, resulted in construction started on three new industrial developments.

Going further south, Georgia is making its name as an agricultural hub, thanks to its 10 million acres of operating farmland, lengthy growing season and favorable climate. Chris Chammoun, Director of Agricultural Technology at the Center of Innovation for the Georgia Department of Economic Development, writes that, “Almost half of the country’s top 100 food processing companies are located in the state, including Pilgrim’s Pride Corporation, Chick-fil-A, The Coca-Cola Company, and Tyson Foods, which source many of their offerings directly from Georgia farms. During the last fiscal year, food processing companies ranked among the greatest number of new industrial projects and expansions.” Chammoun attributes this to Georgia’s logistics infrastructure and geographical location, as well as 22 technical colleges that contribute to agriculture innovation. For more details, see “Georgia Provides Ideal Recipe for Food Processing.”

We hope you enjoy this issue of Industry Today and that it supplies you with something to think about, good or bad. You’ll find the same extensive timely coverage on a weekly basis at industrytoday.com.

Subscribe to Industry Today