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Managing Director Insights

Even More Supply Chain Disruption

2/1/2024

The automotive industry is growing in China.

But so are the human rights violations for car makers and suppliers who utilize unethical labor practices … forced labor … from products produced in or sourced from China.

The primary culprit is the heavy industrialized area in the Xinjiang Uyghur Autonomous Region. There has been a long-running campaign of repression in the area, especially against Uyghurs and other Muslim communities.

Aluminum products are often sourced from this region, which are used in a variety of vehicle applications including vehicle light-weighting, engine blocks, frames, and battery parts.

In 2021, carmakers accounted for 18 percent of all the aluminum consumed across the globe.

And 9 percent of all the aluminum’s global supply comes from the Xinjiang region.

United Nations Guiding Principles on Business and Human Rights are guidelines utilized by major manufacturers, including car manufacturers. And they’re now being held accountable by global human rights organizations, more than ever.

Undoubtedly, more disruption is on the horizon, especially for aluminum parts.

Supply Chain … have any two words meant more in the manufacturing world since Covid hit in 2019?

35-45 .. heat wave.

Make it a great day, everyone!

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SCN – Search Consulting Network

Jim Guerrera

Author Info

Jim Guerrera

Jim Guerrera, Managing Director, founded SCN in 2000. Jim is primarily responsible for the development of the leaders at SCN, strategic planning, the hiring and development of company associates, culture leadership, core value leadership, sales le...

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