Quote Originally Posted by GRG55 View Post
Taiichi Ohno's pioneering "just-in-time" manufacturing within the much admired Toyota Production System works fine for making cars or other customized consumer goods.

But the "benefits" of minimum inventories and long, concentrated JIT supply chains in other areas of the economy would appear to have been conclusively refuted. This may be one of the constructive outcomes of this episode.

If we've learned anything either a) point of consumption inventories ("stock the pantry") will increase; b) local distributors will be given incentives to maintain higher minimum stocks of consumables made in distant lands, or c) supply sources will become distributed as manufacturing is brought closer to home.

I really hope we see more of 'c', even though we know it will be inflationary.

The vacuous dilettante that passes for our Prime Minister in 2015 stated Canada could be the first "post-nation state" (whatever the h€££ that means). In 2020 his government has discovered that borders actually matter. Imagine that...
Ironically one of the areas Trump got right even if for the wrong reasons. Expect that to be a talking point in the Fall.

China will definitely take a hit from this as many companies pull out or lessen China-dependence for either strategic or diversification reasons. It's unclear to what extent this will impact China.

This *may* start the rise of Africa which is one of the last bastions of low-cost labor and has the added advantage of not being a strategic competitor to the West.