Japan Earthquake Pressures Supply Chains

    Photo: Reuters [via CNBC]

    The Facts

    • On Wed, a 7.4 magnitude earthquake struck just off the coast of Japan, killing four and injuring another 150 in Soma, Fukushima.

    • It struck just days after the 11th anniversary of a devastating earthquake that killed over 16,000 people and triggered the Fukushima nuclear disaster. Last week's quake caused a power outage at the facility but there was no danger.

    The Spin

    Narrative A

    The earthquake is yet another supply chain fiasco for Toyota and the once-predictable auto industry. Whether it's Ukraine, the pandemic or disasters like this, automakers don't know what's coming month-to-month. Look for Toyota and others to curb production as a result.

    Narrative B

    Japan is hard at work with other nations to heal the Asia-Pacific's supply chain woes. It's vital to diversify investment and share tech to minimize disruptions, and national governments can help pave the way.

    Narrative C

    It's time for global supply chains to reinvent themselves. The current hyper-efficient "just in time" model doesn't work well in our disruptive world. Being more environmentally friendly, relying on local production, and increasing disaster resilience are all options to build a better supply chain future.

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