by myuibe via FlickrRich Brubaker at AllroadsleadtoChina assesses the business risk as the Beijing Olympics near and a part of the country might be heading for a shut down to prevent polution and save energy and water.
In the past for this kind of measures foreign companies were often excluded, but it did not help them since their suppliers would not deliver anymore.
With a simple back of the envelope analysis, there are three potential impacts. first is that suppliers will be shutdown and therefore a part/ process cannot be delivered on time. If the supplier is one that is slated for a 2 months close, then the impact could be significant, and buyers should really act now to assess if they have anyone in this area. second is that the supplier will not be able to deliver the goods on time due to restrictions on trucks. shutdowns or not, Beijing has already announced a number of restrictions related to cars and trucks, and it is clear that line haul capacity will shrink (driving up costs and lengthening timelines). and finally, even if you get the parts and are able to avoid being shutdown… you may find it difficult to ship your goods yourself. Ports may be restricted for security, trucks may be off the road, crane operators may be watching the national team.Some good advice here!
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