The crisis is here. And the real crisis will come. Now, in the midst of a global partial lockdown – open here and there, airtight here and there – the consequences of that shutdown for the global economy are already clear. Global logistics has been mixed.
With all the genius in the globalization circus: everything hangs by a thread! Temporary local, regional and national events make individual barrels overflow: floods in the Mississippi delta, a container ship stuck in the Suez Canal, Saifan Javan in Germany, a global player like Canada exiting the market for raw materials such as wood. Bam! No more materials.
Read also: Handicaps to Wood and Steel Delivery: Why Building a Home in MV is So Much More Expensive
Everything is connected to everything. Supply chains are collapsing, and logistics systems disintegrate. What happens in Houston or Beijing has an effect on the carpenter at Tribsees or the steelworker at Bad Kleinen. It has always been like this. Keyword: Chaos Theory! But now two new players are playing: biological and digital viruses!
The global economy can prepare for high reviews and prices: from bread rolls to cruises, and from yogurts to single-family homes.
Written by Michael Mayer