As Americans, we are truly free and will defend that right at all costs. For me personally, watching what is taking place in Ukraine emphasizes just how precious this right is. The people of Ukraine have lived both ways, previously under the oppressive rule of a dictator, and for the last 30-years as a free nation. You tell me, which way is better? These people are willing to risk it ALL to remain independent and most of all, free.
As Americans, we need to trust that our government and military will make the right decisions. As American manufacturers, I ask that we stand together in our resolve to build the best products in the World. Good ole’ American ingenuity and hard work is the backbone of this country and I’m proud to say, Made in America.
Freedom builds pride, inspires quality, and creates a culture that is worth fighting for; and the people of Ukraine know that now more than ever.
The economic effects from the war in Ukraine will have a global reach for sure. We need to put the health and welfare of the Ukrainian people top of mind and suck it up when it comes to any inconveniences we might encounter as a result of economic sanctions or other supply chain issues that may result from the conflict.
Planning is going to be key for the next several months. At TCI we continue to make commitments to increased inventory levels to help keep your production lines moving. For your part, it would be very helpful to communicate with us as far in advance as possible on upcoming materials needs. If we work together, we will overcome economic and supply chain challenges.
Current and Future Challenges
- The United States imports relatively little directly from Russia, but a commodities crunch caused by the conflict could at least temporarily drive up prices for raw materials and finished goods, especially when much of the world is already experiencing rapid inflation
- If oil prices stay at about $100 a barrel, energy costs for U.S. households could rise by $750 annually
- Russia is the world's largest supplier of palladium, used by automakers for catalytic converters. Disruption of Russian supplies will impact auto production, which is still suffering from pandemic-related supply shortages of semiconductor chips
- Ukraine makes more than 90% of the world’s supply of neon gas, which along with palladium is vital to manufacturing semiconductor chips
- Car and phone prices may increase due to continuing and further exacerbated chip shortages
- Russia and Ukraine export more than a quarter of the world's wheat, and Ukraine is a major corn exporter
- US household wealth has become more reliant on the stock market since the pandemic, with direct holdings of stocks and mutual funds accounting for more than 30% of net wealth at the end of 2021. Any disruption in the stock market will have a negative effect
- The war in Ukraine could shift the economies of Europe, and possibly the United States, onto a "wartime footing," resulting in goods shortages and further upward price pressure
- Russia could try to counter sanctions with cyber attacks on U.S. or European financial infrastructures, among other targets
- The European Union relies on Russia for more than a third of its natural gas supply. Disruption will create demand from other regions around the world, driving prices up
Together, we can work through all challenges.
Thanks for reading.