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Strike Force

Tom Mitchell
Financial Times
11 June 2010

Tim Lawrence, head of supply chain at PA Consulting Group, is quoted in the Financial Times commenting on the impact on the global economy of the industrial action in some of China’s factories.

The article argues that, although China is one of many links in the production chain for many of the world's consumer goods, the limited amount of value added by the country's factories would mean that any rise in costs will only have limited impact on consumers.

Tim points out that the potential interruption of supply chains from any prolonged labour unrest in China was likely to be at least as damaging as the rise in wage costs.

Tim says: "A strike will be much more damaging to a company sourcing from a single factory in Asia than a small increase in costs," he says. "If I were a company in that position I would be questioning the robustness of supply chains."

You can read the article in full here.


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