Industry Insights: Staying Resilient Amid Global Tensions
The ongoing conflict between the US and Iran is creating ripple effects that affect businesses around the world, including Australia. As we slowly feel the impact through energy costs, supply chain pressures, and operational uncertainty – what can we do to stay afloat?
Disruptions to oil and gas shipments, particularly through the Strait of Hormuz, have pushed global energy prices higher. This affects not just energy-dependent industries but also shipping, production, and logistics costs.
Rising freight rates, delays, and higher insurance costs are putting pressure on supply chains. Prices for key materials from metals to industrial chemicals are fluctuating more than usual.
Conflicts today aren’t just physical. Cyber threats linked to geopolitical tensions are on the rise, as well – targeting businesses’ critical systems and digital infrastructure.
What Can You Do as A Business?
- Review your arrangements with suppliers and logistics, consider alternatives and plan for delays.
- Stress-test your operations for emergencies – check your inventory levels for flexibility, and other process-related contingencies.
- Strengthen your cyber resilience by reviewing your IT security protocols and incident response plans.
How ADM Can Help You
ADM regularly works with customers to strengthen supply chain security for the systems and components critical to their operations.
The ADM Sense and Control team is currently supporting an aluminium fabrication company that is bringing its powder coating process in-house, which it previously outsourced. This move toward vertical integration not only improves profit margins, but also reduces reliance on third parties and mitigates supply chain risk.
In another case, a boat builder recently lost a key supplier of level sensors used to measure liquid tanks on its vessels. The family-owned supplier had developed a bespoke solution widely used across the industry before going out of business. ADM is now working with this and other affected boat builders to identify and implement suitable alternative level sensors that can be programmed to accurately measure water, wastewater, and diesel levels.
While the geopolitical landscape continues to evolve, staying informed and taking a proactive approach can help minimise disruption and maintain business stability.
Contact our team for expert technical advice and support on how we can help you maintain business continuity.
