Market Alert: International Events that may Prolong Supply Chain Disruptions

The world is trying to return to pre-pandemic conditions. But recent events suggest disruptions to the global supply chain could increase in the coming months before getting better. These include:

  1. New COVID-19 lockdowns in Shenzhen and Chengdu, China forced 34 million people to stay home and (potentially) not work. This is expected to affect operations at many companies, including those making medical products. Hospitals should anticipate possible shortages, as these are not necessarily the last shutdowns.
  2. Russia’s announcement that it is slashing natural gas exports to Europe through the Nord Stream 1 pipeline, which will reduce energy availability and increase costs, particularly as the region heads into the winter heating season. Many manufacturers of medical products are based in Europe, so hospitals should expect potential delays in deliveries.

Unexpected events will continue to disrupt the global supply chain and episodic shortages are anticipated to persist through 2022 and into 2023. Hospitals should continue to plan for shortages and closely monitor existing orders to ensure there are no surprise delays.

Miga will continue to monitor market conditions and share any relevant information as it becomes available.

Miga Solutions provides the most accurate and actionable pricing information, enabling hospitals to lower their medical equipment total cost of ownership (TCO) by 12-16%. To learn more about how your hospital can save, contact us.

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