The coronavirus is just one more in a long list of global sourcing disruptions

Everything from Modern Tire Dealer to the New York Times report the severe impact of the coronavirus on Chinese business retail and manufacturing – and its effect on the global economy. Some travel bans include more than just travel to mainland China and include travel to Hong Kong and Macau, affecting Disney, Nike, McDonald’s, Hyundai and Nintendo – to name just a few well-known brands. Everyone – big or small – doing business with China is affected.

On a personal level, at Kent Elastomer Products our thoughts go out to all those affected by the coronavirus and we hope for the wellbeing and safety of workers around the globe.

Just One More Global Sourcing Problem

Through the business lens, we see again how the global economy is like a house of cards. The coronavirus will pass – we hope with as little damage as possible. But the virus follows in a long line of previous conditions: Stormy weather in Asia affects distribution timelines 10,000 miles away. Shortages, such as silicone, cause production delays and/or hike prices through the roof. Now the virus grinds to a halt Chinese retail activity, manufacturing, delivery and travel. There have been many more – and there will be more to come. Wouldn’t it be great to avoid this gamble?

What will the next global economy wild card factor be?

Even without viruses, tariffs and shortages, global sourcing and shipping has lost its luster. It used to be cheap – and some say it was worth it in less turbulent conditions. But today’s manufacturing climate runs on razor thin margins, especially for small manufacturers – making global sourcing too risky. These changing trends have led businesses to search for domestic solutions once again.

The Domestic Advantage

In our six decades of success, Kent Elastomer Products has thrived through the cycles caused by global supply chain disruptions. KEP offers an alternative that grows more popular and reassuring every day.

Because KEP is a domestic producer – the only surviving supplier of natural rubber latex tubing in the USA – our customers are immune to disruptions caused by shortages, shipping, quarantines and other factors.​

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