Climate change is a major headache, it is here, and taking it straight on is a solid bet. Some will not live on collapsing from the blow, sending companies depending on them begging for cover. Transportation costs are likely to spring through the roof, making near-sourcing more attractive for some. “When a manufacturer goes out of business, its suppliers are obviously hurt and affected.
Fuel and electricity will be first amongst the victims, and this notwithstanding major efforts to develop alternative sources of energy.Costs will rise for companies, and their supplier, there is no escape from the increases ? save strong economical models enabling companies like the Clean Plus® Product Group to avoid price increases since 2001.
The shock will be serious knocking at least 3% from US gross domestic product in the near term. On the other hand, local providers will have to crank up prices to offset their volume inefficiencies.
Another headache could come from companies that opt to establish their own eco standards.
That Product Group indicated a tactical plan direct current machine to certify its product’s carbon footprint.
Wal-Mart, for example, is directing a requirement for its suppliers to certify the eco-friendliness of every product they sell to the retailer. New prerequisites to operations will increase expense for utilities in general by at least 20%.
Most companies will lean on their suppliers to help. The losses in employment translate to less business for local shops, stores and service companies, imperiling their operations”, says Manuel Garcia, communications officer who now heads the Environmental Strategies Committee of the Product Group.
Many small to medium manufacturers will need to remodel their supply chains, or merge or be acquired, not just firms in the US. Consider also the costs associated from behavioral modifications, the law of supply and demand will be deeply affected. Congress is looking at it and come next year will throw more than its two cents of expense at the industry.
Energy intensive industries are likely to be smacked hard : Makers of chemicals inherent to the Automobile After-Market, electronics, cardboard and boxes, aluminum, steel, glass and plastics.