Crisis Affecting Industry

In his exclusive column,  Tim Pollard takes a look at how the industry could be affected by global issues as we head into winter. 

Crisis? What Crisis?

I’m an optimistic kind of chap, I always see the sun shining through the clouds. But even I have found the currently growing avalanche of crises a tad worrying.

Whether it’s pandemics, shortages, strikes, wars or the minor matter of climate change; it just seems relentless. I would go and see the doctor but there’s too long a queue.

The coming together of all the various different elements shows just how interlinked our modern world has become and the longer it goes on, the worse it becomes. The spiral of product shortages due to the pandemic, war and climate emergencies inevitably lead to rapidly rising prices which then causes labour disputes as the cost of living becomes simply unmanageable for many.

The labour disputes themselves then make the situation even worse as docks and transport are affected.

So what is the answer? Frankly, I wish I knew. What I do know is that the longer the supply chain, then the less control you have over it and the more vulnerable you become to disruptions. The ‘global economy’ has provided many opportunities and it has totally transformed some markets. The problems arise when markets become dependent on supplies from a small number of suppliers. This is nothing new of course, those old enough to remember the ‘Oil Crisis’ in 1973 when OAPEC instituted an embargo of supply to those countries who had supported Israel during the Yom Kippur War, will find the current energy crisis somewhat familiar.

Of course, fuel prices affect EVERYTHING. In our industry fuel costs have always been critical since home energy bills are dominated by space heating and producing hot water. Heating is also a major factor in climate change
accounting for about 37% of total UK carbon emissions when including industrial processes. So heating is important in every sense, whether it be the fuel used, the cost or the consistency.

Perhaps the current crises will prompt some serious questions about the supply chain and why local sourcing can be critically important to both cost and stability. Will there be a strong trend for UK-manufactured products and components? Only time will tell.

Oh, is that the sun coming out?