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Economic fallout from China's coronavirus

Bernard_Fokke

Captain Fokke
Supporting Member
An economic ripple effect has started, we'll be feeling it for some time.
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The economic casualties from China's conovirus epidemic are mounting as Asian and European auto plants run short of parts, free-spending Chinese tourists stay home and American companies brace for unpredictable turbulence.

 
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An economic ripple effect has started, we'll be feeling it for some time.
*************************
The economic casualties from China's conovirus epidemic are mounting as Asian and European auto plants run short of parts, free-spending Chinese tourists stay home and American companies brace for unpredictable turbulence.

Stock market still not taking it seriously.

Any severe effects will probably have democratsxclimbing over each other with promises to create government jobs, if elected president
 

Bernard_Fokke

Captain Fokke
Supporting Member
Stock market still not taking it seriously.

Any severe effects will probably have democratsxclimbing over each other with promises to create government jobs, if elected president
Probably won't see the stock market react a lot, not until the effects reach the manufacturers of stuff that Chinese parts put together.

Some cars, lots of electronics and other stuff.

The weak link in the manufacturing process, it's called "Just in time parts supply" It's a common practice nowadays as it helps keep costs down by not having a years supply of parts on hand, a lot of companies have a week to ten days of assembly parts on hand at best.

The system works great until it's interrupted then it's pretty bad for the entire value added stream.

I saw it happen from Japan due to the tsunami, I needed a Yamaha outboard motor fixed just after the tsunami hit and it interrupted the supply of parts to Yamaha as it seems a lot of the small parts that Yamaha needed came from little mom and pop shops set up in homes.

These folks would get a small CNC machine and make just one style of part part like carburetor jets. They'd bid on supplying the parts to Yamaha on a just in time basis say a thousand .05 mm jets per month and everybody was happy. At least until the tsunami wiped out mom and pops (Should I say Papasan and Mommasan ?) little backyard business then the bottom dropped out of the business for a while for Yamaha, Honda and others.

Same stuff is happening in China as we speak, the ripples just haven't gotten here yet but rest assured they will.
I ended up having to buy a new motor due to the parts supply.
 

excalibur

Council Member
Where does the Buck stop?

Has what to do with anything? And it doesn't mean what you think it means.

That phrase was a term used in poker, the 'buck' was the guy dealing the cards. Harry Truman was a big poker player; the sign given to him by a friend meant that Truman was the big dealer as POTUS.
 
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