Supply Chain Experts Warn that the Supply Chain Impact of Hurricane Harvey will be Worse than Expected

Site Concentrations in affected Areas

This is going to be a big supply chain disruption. Resilinc has mapped almost 800 factories, warehouses, distribution centers etc. to the region of Texas that was affected by Hurricane Harvey, and 300 of them are in the Houston vicinity

Two of the world’s foremost experts on supply chain risk management, predicted that the global supply chain impact of Hurricane Harvey will be unprecedented, widespread and realized, not only in the near term, but in weeks and months to come. Bindiya Vakil, CEO and founder of Resilinc and Joe Carson, Chief Strategy Officer at Resilinc warn the supply chain leadership of companies that Hurricane Harvey’s disruptions will ripple through the supply chain and be realized at factories and facilities far away from the impacted area.

“Let’s not kid ourselves folks, this is going to be a big supply chain disruption. Resilinc has mapped almost 800 factories, warehouses, distribution centers etc. to the region of Texas that was affected by Hurricane Harvey, and 300 of them are in the Houston vicinity,” warned Ms. Vakil. “Even if a supplier’s factory is not flooded, the infrastructure (power, water, transportation etc.), needed to operate is not going to be there for weeks”.

The experts cited several key points to make the case for why this would be a major supply chain disruption. First, Hurricane Harvey, which formed on August 24 as a Tropical Storm in the Gulf of Mexico, soon strengthened into a massive Category 4 Hurricane and stalled over a commercially vital region of Texas dumping record levels of rain, as much as 52 inches in some regions, causing widespread and extensive flooding in the Houston and surrounding low-lying areas. This region of Texas is responsible for almost $600 billion in economic activity and is home to ports that trade with many countries around the world.

Second, Texas’ chemical industry is a foundational block of the interconnected global supply chain. Resilinc’s extensive data repository, which tracks millions of parts and raw materials through multiple supply chain tiers by mapping the global supply chain connections, shows that 68 key chemicals and intermediates originate from the Texas region. Every…

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