Supply Chains at Risk From Tropical Storm (Risk & Insurance)

More flooding in the Philippines could damage call centers and suppliers.

Supply chains will likely be strained by the latest tropical storm in the Philippines, which hit the northern part of the country early today, Risk & Insurance reports. Severe flooding last week killed 95 people and displaced many more.

Many call centers are located in the region, as well as software development and manufacturers of transportation equipment, semiconductors and clothing. As flooding displaces residents, labor may be in short supply and orders may lag. However, foreign investment in the Philippines is not as entrenched as in Thailand, where flooding last year caused major disruptions of global supply chains.

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For more on supply chain risks, see Indian Blackout a ‘Wakeup Call’ and Supply Chain Insurance Woes.

 

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