EkaLore uses a selected set of analytical lenses to examine the current marketplace and economic trends, conflicts, and choices. In this short series of notes, EkaLore provides perspective and insights into key choices forced on enterprises.
1) Inventory gluts will hang overproduction of goods and depress pricing. Producers have announced USD $Bs of extra inventory which must be sold down.
2) Investors and governments will be disappointed in the delayed timelines as semiconductor enterprises slow the full production of new facilities to match market conditions. These delays will be measured in years not months.
The media and business press have adopted the term “supply chain crisis” as shorthand to describe disruptions in logistics, production shortfalls, and abrupt price changes throughout multiple industries.
EkaLore has previously looked at overproduction in industries like semiconductors in response to the market, governmental, and perceived demands of economies.
Here EkaLore considers the qualities of resilience and sustainability in cyclic markets and forced choices for enterprises. The choices of enterprises are discussed first with additional background in the next section.
Enterprises will make critical financial structure, organization, talent, and vision decisions. Each of these can be illustrated with an example while keeping in mind choices are being forced by external factors, not just political, internal, or management wishes. The next post in the series will consider some of the underlying causes of enterprise retrenchment and Investor and Government disappointment.
You can read this and other posts at www.ekalore.com/blog-1
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