Global supply chain crisis to persist but still 'too early' to evaluate impact

Short-term volatility

clock • 3 min read
 Experts say investors should look through the supply chain crisis
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Experts say investors should look through the supply chain crisis

Global supply chains – which were already mired in uncertainty following the onset of Covid-19 – are likely to see a prolonged period of volatility, but it is still too early to evaluate the impact of the crisis, commentators have said.

Shortages of workers, equipment and space have added pressure to an already fragile global supply chain ecosystem and could lead to consolidation among smaller businesses while dominant market players' positions are strengthened. According to David Lambert, senior portfolio manager European equities at RBC Global Asset Management, inventory is being run down to satisfy the end demand for finished goods. At the same time, a separate cycle of inventory is being expanded by "manufacturers and assemblers who have the financial strength to do so" in a bid to prevent production disruptions ...

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