Juarez’ economy affected by component crisis

Juarez’ economy affected by component crisis

JUAREZ – The lack of industrial components and raw materials affected the main economic sectors of the city, a situation that, according to experts, will slow down the recovery that was underway. 

Shortage of beer containers, problems in obtaining some brands of new cars and the increase in their cost insufficient construction materials for houses, plazas and buildings, as well as technical stoppages in maquiladora companies, are some of the problems that the city is facing due to the problems in the logistics chain at a global level due to the COVID-19 pandemic.

Initially, it was the lack of microchips that had affected the maquiladora industry at the beginning of 2021, although as the months passed, other components such as steel, aluminum, wood, plastics and resins were added, which impacted other sectors such as construction, breweries, car dealerships and even exports to the United States.

Jesus Manuel Salayandia, president of the Business Coordinating Council (CCE) in Juarez, explained that the lack of available raw materials, combined with the high demand following the economic recovery, has meant that supply can no longer be guaranteed, which impacts the entire value chain, from manufacturers to distribution.

In this sense, Isaac Leobardo Sanchez Juarez, in charge of the Economics Laboratory of the UACJ, recalled that with the economic paralysis due to the pandemic, the production of inputs decreased, although the demand continued and in some cases increased, which gave rise to a shortage of all types of materials and inputs.

"Stopping the activities meant that basically the supply contracted, while the reactivation process took time, although by now it is more solid and that makes industries demand many inputs," he said.

He added that the relative shortage of these inputs, in turn, causes a price increase in their prices.

Source: Diario.mx