Supply Chain and Labor Disruptions Increased Through the First Half of 2023

Supply Chain and Labor Disruptions Increased Through the First Half of 2023

Time Stamp: July 14, 2023 12:00 AM
Source Node: 2761780

A total of 8,197 supply chain disruptions were recorded by Resilinc across all industries from January 2023 to June 2023, a 3% year-on-year increase, indicating the supply chain is stabilizing, the company said.

Labor disruptions were one of the biggest disturbances during the first half of 2023, up 136% compared to the first half of 2022, including strikes, layoffs, labor protests and more. Factory fires were found to be the leading supply chain disruption with 1,642 instances taking place through the first half of 2023, a 20% year-on-year decline.

The ten biggest disturbances reported during the first half of 2023 were factory fires, mergers & acquisitions, business sales, leadership transitions, factory disruptions, legal actions, labor disruptions, cyber-attacks, port disruptions and recalls. Resilinc said that the healthcare, high-tech, automotive, aerospace, and food & beverage industries faced the brunt of the impact that came from the reported disruptions.

Financial disruptions also drastically increased through the first six months of this year, with bankruptcies up 196% and profit warnings up 300% compared to the same period in 2022. Interruptions caused by corporate restructuring also increased by 125% year-on-year.

Manufacturing disturbances, such as shutdowns, production halts, warnings/citations and labor accidents, grew as well, increasing by 30% year-on-year. Product recalls were also up 66% compared to the first half of 2022.

Data for Resilinc was gathered by its A.I. platform, EventWatchAI, which collects information and monitors news covering 400 different types of disruptions from 104 million different sources around the globe. EventWatchAI analyzes and contextualizes almost five billion data feeds across 200 countries annually.

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