Kansas City Faces Challenges as Possible Port Strike Looms
As the bustling city of Kansas City gears up for the busy holiday season, residents and business owners are starting to feel a bit of anxiety over a potential strike that could disrupt the already fragile supply chain. Larry Wigger, a professor of supply chain management at UMKC, recently shared his insights into this situation and its possible impact on the community.
What’s at Stake?
If a strike occurs, Wigger says we could experience significant disruptions, especially as we head into the holiday shopping season. “I would be worried tomorrow morning if you wake up and the strike has happened; you know, it’s looking highly likely this is the point of peak leverage for a union going right up to the deadline,” he cautioned. This isn’t just a threat to business owners, either; consumers may also start noticing empty shelves and rising prices.
The expert highlighted the concerns that longshoremen have regarding the increasing use of automation in shipping processes. While nobody aims to displace workers, the pivot towards technology is unmistakable. “Anytime we can automate processes, it can mitigate that risk; it can reduce the number of workers we have to go out and hire,” Wigger explained. This shift towards automation could potentially turn into a long-term sticking point in negotiations and longer-term relations, causing unease for employees and consumers alike.
Echoes of Past Disruptions
Wigger also drew parallels to the struggles that emerged during the COVID-19 pandemic. “In some ways, it’s a throwback to four years ago when we went through COVID,” he mentioned. Just like back then, if a strike occurs, we may experience supply chain bottlenecks similar to those that plagued ports and shipping in the early days of the pandemic.
The stakes are particularly high right now since the ports involved play a crucial role in moving around **50% to 60%** of containerized goods in and out of the United States. Retailers have already been stocking up for the holidays, so any disruptions could mean less available inventory on store shelves. This risk could also constrain manufacturers, limiting what they can import to fulfill their production needs.
A One-Two Punch Forecast
As if that wasn’t enough, Wigger pointed out the recent hurricane damage that has brought additional challenges. “We just had what looks like was probably the second or third most expensive hurricane, massive destruction of homes, so we need building supplies,” he lamented. If ports are congested due to a strike, it would make it even harder for the city to recover and rebuild.
With inflation already being a concern nationwide, Wigger warned that if essential supplies become scarce, the situation could worsen dramatically. “The potential collateral damage to the economy is 1 to $5 billion dollars per day,” he said, sending a ripple of concern through the local business community.
Business Owners Brace for Impact
Local entrepreneurs are feeling the weight of these potential disruptions. At the West Bottoms Whiskey Company, owner Alex Lindsey shared his worries about the effects of a strike. “I feel for the workers,” he said, recognizing the financial struggles many face. “In general, people are struggling to pay their bills; people are working very, very hard.” Lindsey relies on timely deliveries of glass bottles and imported ingredients for his whiskey, and he knows that any delays could hurt his business.
Meanwhile, Michael Werner, managing partner at Aqua Penny’s, expressed his concerns as well. His restaurant thrives on fresh shellfish and imported produce, both of which come with a short shelf life. “It’s going to be difficult to say the least,” he acknowledged, indicating that he has already had to adjust his sourcing strategies in light of recent supply challenges.
Staying Creative Amid Challenges
Both Lindsey and Werner embody the resilience and adaptability that is necessary in times of uncertainty. Werner noted that they are prepared for a bit of a “tug of war” for product availability. “We’ve already seen the spike at the grocery store, so think about feeding hundreds of thousands of people a week—this has become their dining room table,” he said, encouraging those in the industry to “do more with less” and get creative with solutions.
As Kansas City stands on the brink of potential supply chain challenges, residents can only hope for timely resolutions that will keep businesses thriving and shelves stocked. With uncertainty ahead, it will be crucial to stay informed and prepared during this critical time.
