Syracuse, N.Y. (NCCNEWS) – The Russian invasion of Ukraine has brought the issue of the supply chain back into focus. Sanctions brought opon Russia by the world have brought up the question of how the local economy will be able to handle shortages of certain reasources from Russia.
The COVID-19 Pandemic has already impacted the global supply chain due to recession. Randy Wolken President and CEO of The Manufacturers Association of Central New York said he is concerned the crises could further impact the access of important goods for his members.
“My biggest concern is actually access to the supply chains globally” Wolken said, “and I’m worried about you know the inflation that happens and their supply chains and a lack of parts and availability.”
Energy and wheat are two of Russia’s largest exports. Which has caused the prices of oil, natural gas, and wheat to raise sharply due to concerns about global supply. Ukraine meanwhile is the largest producer of Neon, which is crucial for manufacturing semiconductor chips. The conflict some fear, could cause another global chip shortage. Which would lead to the rise in the prices for phones and automobiles for consumers around the globe.
Wolken says while there will most likely be economic impact. There is a solution to help mitigate the damage for Central New York.
“I do think this will have an economic impact I think we should move now to mitigate and for the long term mitigate by bringing more production back to the US by actually expanding manufacturing in New York,” Wolken said.
The United States and other countries are threatening more sanctions on Russia and its economy unless its conflict is resolved with Ukraine.
