Edwin Starr’s song, “War,” said it best.
As the first land war touching Europe in decades, Russia’s invasion of Ukraine is what many are calling the start of WWIII—let’s hope not. Starr’s song lyrics lament the many, many negative impacts of war. Beyond the obvious impacts, this post will focus on the negative consequences war and political tension will have on global supply chains and manufacturing operations.
In 2020 and 2021, manufacturers weathered unprecedented supply chain woes. Now, 2022 is kicking off with additional challenges resulting from Russia’s invasion of Ukraine. Given the interconnectedness of the world marketplace, even supply chains without direct ties to the region will be impacted. For example:
So, what can companies do to navigate this fluid and ever-changing market in the face of war-related impacts? Continue employing the risk mitigation strategies that they have been honing for the last two years. These include:
As the Russia-Ukraine war continues, so too do new business and legal implications for companies around the world. For more information on how to mitigate risk and protect your business, contact a Foley lawyer today.