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Supply Chain Disruptions Likely to Persist into 2022

Supply Chain Disruptions Likely to Persist into 2022

Created: Thursday, October 14, 2021 - 12:59
General Security and Resilience, Security Preparedness

Supply chain disruptions currently afflicting the U.S. and the global community will likely continue into next year. Many water and wastewater utilities have already been affected by the disruptions and have had to implement contingency measures that include reevaluating their plans and exploring alternative supply channels to increase their operational resilience. Given the predicted duration of the disruptions, other utilities are encouraged to assess the situation and consider implementing similar measures.

A recent report from Moody’s Analytics cautions that supply chain disruptions, which are appearing across the globe in virtually every sector, “will get worse before they get better.” The shortage of truck drivers has exacerbated the disruptions because less drivers means more congestion at ports and energy shortages at gas stations. According to Moody’s, “border controls and mobility restrictions, unavailability of a global vaccine pass, and pent-up demand from being stuck at home have combined for a perfect storm where global production will be hampered because deliveries are not made in time, costs and prices will rise and GDP growth worldwide will not be as robust as a result.”

The White House announced yesterday a number of measures to address the supply chain disruptions. First, the Ports of Los Angeles and Long Beach will move towards 24/7 operations to alleviate the congestion. Second, many private companies, including Walmart, UPS, and FedEx, announced they will increase their night-time deliveries, and some will move towards 24/7 operations as well. Despite these new policies, the supply chain disruptions are likely to persist at least into early next year. Consequently, infrastructure entities will likely continue experiencing material shortages and logistical delays. Nevertheless, operators can mitigate the risks of operational disruptions by keeping their infrastructure assessments up to date, contacting suppliers to understand current bottlenecks, sourcing alternative suppliers, and pre-stocking critical materials. Read more on the supply chain disruptions at CNN or read more about increasing your supply chain resilience at WaterOnline.