Amazing and sobering WSJ interview of Dutch Admiral Bauer, NATO's top military officer, on supply chain risks.
"We've long thought that mutual economic relationships between nations would prevent war. We thought we were buying our gas from a company. Turns out that wasn't true.
"Putin told Gazprom to turn the [gas] off, despite what was in the contract... turning energy supply into an economic weapon against us"
"We've long thought that mutual economic relationships between nations would prevent war. We thought we were buying our gas from a company. Turns out that wasn't true.
"Putin told Gazprom to turn the [gas] off, despite what was in the contract... turning energy supply into an economic weapon against us"
More supply chain risks were seen during Ukraine invasion:
"The military has to prepare or the governments for war, but I think the businesses have to prepare for war as well and it is the dependencies."
- IKEA found 25% of all raw materials came from Russia, and had to change overnight
- BMW had all their cables produced in two factories in Ukraine. In first 2 weeks of invasion, no more cables
"The military has to prepare or the governments for war, but I think the businesses have to prepare for war as well and it is the dependencies."
- IKEA found 25% of all raw materials came from Russia, and had to change overnight
- BMW had all their cables produced in two factories in Ukraine. In first 2 weeks of invasion, no more cables
"Going to the countries where labor is cheapest or certain expertise is the best or whatever the arguments are to go somewhere, then that is fine and understandable. But we have to become much more strategic. For toilet paper, I don't care where it's made. But for certain things, I think we have to consider bringing back production to Europe to North America to make sure that in our, let's say alliance territory"
This was a fantastic and sobering interview, a testament to the thinking going on at policy and corporate executive levels, on the economic realities of this age.
Other themes:
- solar is great, but introduces lots of potential supply chain risk to China — setting the stage for another energy disruption
Other themes:
- solar is great, but introduces lots of potential supply chain risk to China — setting the stage for another energy disruption
- a call to action for corporations to prepare for massive disruptions to supply chains due to political and economic conflict, especially for things essential to society (e.g., energy, national security, etc.)
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