China's supply chain is melting in extreme heat. Whose will be next?
Scorching heat has charred a big part of China, cutting factory power. It shows the new supply chain issues that await if we don't adapt, including how goods are made and moved around the world, according to an ASU finance expert.
In this article published Aug. 23, 2022, in Protocol:
Supply chain customers factor climate shocks into choosing suppliers. But when those shocks — in the case of the research, floods, and heat waves — are worse than expected, customers are up to 11% more likely to end their relationship with a supplier.
– Christoph Schiller, assistant professor of finance
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