Resilinc, a leading provider of supply chain resiliency solutions, has unveiled data revealing a significant 30% increase in supply chain disruptions in the first half of 2024. The EventWatchAI platform reported 10,629 disruptions between January and June, impacting industries such as Life Sciences, Healthcare, General Manufacturing, High-Tech, and Automotive.
The top ten disruptions reported included:
– Factory Fires
– Labor Disruptions
– Mergers & Acquisitions
– Leadership Transitions
– Factory Disruptions
– Business Sales
– Legal Actions
– Recalls
– Extreme Weather
– Cyber Attacks
Notably, while disruptions due to factory fires decreased by 21%, compliance and ESG-related disruptions surged. Regulatory changes increased by 185%, fines by 82%, legal actions by 43%, and labor violations by 144%, driven by new legislation such as Germany’s Supply Chain Due Diligence Act, Canada’s Modern Slavery Act, and the EU Corporate Sustainability Reporting Directive.
Financial and organizational risks also escalated, with bankruptcies up 200%, force majeures up 128%, and leadership transitions up 92%. These increases are attributed to economic pressures including high-interest rates, inflation, shifting consumer demand, and rising operating costs.
Labor disruptions rose by 42%, with protests and riots increasing by 421%, reflecting global unrest over economic conditions and labor rights. Extreme weather events also spiked, with flooding incidents up by 220%, forest fires by 48%, and tornadoes by 94%. The number of hurricane/typhoon alerts reached 63, a 37% increase over last year and a 425% jump from H1 2019.
Over half (58%) of the disruptions triggered the creation of WarRooms—virtual platforms on Resilinc’s dashboard for customers and suppliers to assess and mitigate disruptions collaboratively. Resilinc’s EventWatchAI, monitoring 400 types of disruptions from 104 million sources, analyzes nearly 5 billion data feeds annually across 100 languages and 200 countries, making it the industry’s most comprehensive supply chain risk monitoring system.
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