COVID And Now Hurricane Laura

COVID And Now Hurricane Laura

COVID And Now Hurricane Laura

The U.S. Texas and Louisiana Gulf coast region is this evening undergoing mandatory coastal evacuation procedures in the wake of Hurricane Laura, now a Category Four storm with catastrophic strength.

Peak winds are forecasted to be as high as 150 miles per hour (240 kilometers per hour) accompanied by a possible 15-foot water surge at time of landfall with forecasters now warning of lethal flooding and wind damage. Reports point to the potential of upwards of billions of dollars in potential property loses.

Hundreds of thousands of people are reportedly at risk.

As if the COVID-19 disruption was not enough, multi-industry supply chain management teams must now prepare for whatever affects come from this major storm

From a supply network perspective the threatened area includes the epicenter of U.S. oil refining and petrol-chemical facilities, along with the major port areas of Houston and New Orleans. Facilities that are in the path of the storm are already closed and making appropriate preparations including the largest refinery complex in the United States, Saudi Aramco’s Motiva refinery.

Comparisons are already being made to Hurricane Katrina that occurred in 2005 or Hurricane Harvey that occurred in 2017, each storm of similar magnitude which resulted in upwards of $150 billion in property damage, loss of life and multi-days of industry supply chain disruption.

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Top 25 Risk Factors for Manufacturing Supply Chains

According to a recent report from BDO USA, an accounting and consulting organization, manufacturers’ intellectual property, supply chain data and products have become prime targets for cyber criminals.

The 2016 BDO Manufacturing RiskFactor Report examines the risk factors in the most recent 10-K filings of the largest 100 publicly traded U.S. manufacturers across five sectors including fabricated metal, food processing, machinery, plastics and rubber, and transportation equipment.

The factors were analyzed and ranked by order of frequency cited.

Manufacturing Industry Serves Up New Risks

The manufacturing industry is getting mixed reviews.

The Institute for Supply Management (ISM) Index reported that activity was up in April after five straight months of declines.

Then, in late May, the Purchasing Manager’s Index reported the first reduction in output since September 2009.

In the trenches, manufacturers say domestic demand has been solid, while global business has been more challenging. And the end customer matters: in a recent earnings call, Caterpillar’s CEO noted, “Just about any market that’s away from oil is doing pretty good.”

“Pretty good” is a modest but realistic goal for manufacturers this year, and their top concerns echo this cautious optimism. The annual analysis of the most frequently cited risk factors found the supply chain remains at the top of the list – cited by 100 percent of manufacturers we analyzed – while emerging and growing risks in cybersecurity, competition, labor, pricing, regulations and international operations are also keeping manufacturers up at night.

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