MB Fund Podcast: Are Supply Chains broken?

In today’s investment webinar, MB Fund’s Head of Investments Damien Klassen, and Senior Financial Adviser Sam Kerr investigate if supply chains are broken

On the agenda:

  • Two scenarios to drive the market
  • Lumber
  • Shipping
  • Semiconductors
  • Cars

Can’t make it to the live series?  Catch up on the content via Podcasts or our recorded Videos.


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Damien Klassen is Head of Investments at the MacroBusiness Fund, which is powered by Nucleus Wealth.

 

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Nucleus Wealth Management is a Corporate Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.

 

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Comments

  1. boomengineeringMEMBER

    Hydraulic power Pac coming from Germany arriving tomorrow so not so bad. Will see about the order from USA done today how long that takes.
    Different story for the other EU order as they didn’t have what was on their books.

    • NoodlesRomanovMEMBER

      Just had a 15 week blowout from a major PLC supplier. While not exactly cutting edge tech, these are industrial and specialist, not competing with commodity type chips.

      • boomengineeringMEMBER

        Kept the .machine going which required the EU order but has to be programmed 10.3mm early for linear incrementation as electro brake ppen circuit.
        At least they can resume production until the parts arrive

  2. What people overlook is the longer term effect of rising monopolization and authoritarianism.

    Neoliberalism and associated deregulation has facilitated the growth of monopolies in supply chains over the last few decades. All that red tape cutting has reduced checks and balances. Hyper efficiency has decimated system resilience.
    Rising authoritarianism has influenced supply (eg. Russian gas games).

    The stress of COVID has highlighted these system deficiencies (and others).

    I contend that this is structural, and growing, and will ensure that inflation is very significant going forward.

    • boomengineeringMEMBER

      “Inflation is very significant going forward,, ”
      Bought 2 pushbike tyres $180. Looking up their ph No noticed for cycle repairs $200/hr.
      Seems those dishwashers demanding $50/hr not out of context.

      • $200 ph for push bike repairs….. is this at the kind of cycle emporium where a weekend race bike equals the cost of a low end Hyundai? Or perhaps just that they are so busy (given they sold 5 years worth of bikes in 12 moths last year) that they don’t want the repair work?

  3. Answer to the headline: Yes. Very much so. Won’t be fixed easily either, I reckon it’s going to get compounded next year and get much much worse.

    Delays not just with shipping, but manufacture and access to all raw materials…. now China is shutting down factories 1 day a week due to them deciding to look after the environment, (ugghh yeah right). That’a a double digit reduction in output right there.

    Over 1 year ago I started to plan to stock up my factory and even then it’s taken a ridiculously long time to get components in to try and build up stock. FINALLY I am starting to get ahead, I have 12 x 40″ coming in the next few weeks, (until I see the container on a ship travelling direct to Perth I don’t hold my breath). It’s been a rollercoaster of stock control emotion. All the containers have decided to come at once and I can almost relax, almost. I will keep on doing this until I build up 6-12 months of stock, all items. Also looking at cutting dies locally, (aluminium, plastics), also establishing supply lines in other countries other than China as I am even more worried than normal about what they are going to do.

    Tying up heaps of cash but I view it as sensible risk management. Looking at what is happening around the world with Covid, general vaccine failure, (guys it just doesn’t work), civil unrest both domestically and internally I reckon 2022 is going to be more exciting than ever! The last two years have just been a prelude to the main event.

    Still don’t have the [email protected] to sell all my shares though.