Hurricanes Disrupt Supply Chains – Even When They Hit Remote Areas

The recent devastation wrought on Western North Carolina is devastating. Everyone is now aware of the thousands of families with no power, no running water, and in many cases no homes. But there is another effect, that the media is often not aware of.

Intravenous (IV) Bags

Shortages caused by Hurricane Helene have forced hospitals all over the country to begin postponing surgeries as a way to ration supplies for the most fragile patients.

The current shortage occurred when flooding flowed through western North Carolina and damaged a Baxter plant, which is now closed for cleaning. The plant makes about 60 percent of the United States’ supply of fluids used in IVs, for in-home dialysis and for people who rely on IV nutrition. They include premature babies in intensive care and patients who rely on tube feeding to survive. IV’s are often referred to as the “warhorse” of hospital supplies – an IV is almost always the first action taken when anyone is admitted into an ER.

The situation could become even more dire now that Hurricane Milton is hitting Florida. On Tuesday, workers at B. Braun, makers of a fourth of the nation’s IV fluids, loaded trucks at the company’s plant in Daytona Beach with the medical bags and drove them north through the night to what they hoped would be a safer location.

The Baxter plant, in Marion, N.C., and the B. Braun site in Daytona Beach manufacture about 85 percent of the nation’s supply of IV fluids. Experts on shortages have long pointed out the risk of such over-concentration of critical supplies, which exposes hospitals to those now at hand. Even before the latest storm, supplies were tight and reflected a longstanding problem of how few manufacturers are willing to produce crucial but low-cost and low-profit medical products. These types of supply chain risks are part of a well thought-out sourcing strategy, that every hospital should address. As part of the work I was involved in with SMI, a large hospital not-for-profit supply chain association, one of the recommended outcomes of our study was the development of a “critical attributes” analysis of all hospital supplies. This can lead to advance business continuity sourcing plans to avoid these types of dilemmas.

Quartz Crystals

In the intricate world of semiconductor manufacturing, the use of crystals plays an indispensable role. Crystals are not just dazzling gemstones; they are also essential components that form the foundation of modern electronics. The semiconductor industry relies heavily on crystal structures and materials for their unique properties, which enable the development of increasingly sophisticated electronic devices. 

Crystals are the unsung heroes of the semiconductor industry, serving as the building blocks for countless electronic devices that have become an integral part of our daily lives. Their ordered atomic structures and tailored properties enable the development of transistors, diodes, and a wide array of optoelectronic devices, all of which contribute to the ever-advancing world of electronics. As the semiconductor industry continues to evolve, so too will the importance of crystals in enabling progress in technology and innovation

Ultra-pure quartz is used in semiconductor production, which is critical to your phone, computer, car and much of the tech you use and rely on daily.

Helene shut down the Spruce Pine mines that produce ultra-pure quartz, and some fear that could cause shortages and higher prices on things we buy. The good news is Sibelco, Spruce Pine’s largest quartz mine, says its employees and contractors are all safe and accounted for.

Now, the company is trying to determine what it will take to reopen its mining operation. Experts estimate quartz from Spruce Pine is used in 70-90% of semiconductor production worldwide.
Sibelco and The Quartz Corp, the two major mines in the region, have been closed for nearly two weeks because of Helene, and it’s unclear when they will reopen.

A lot of companies do have some inventory in preparation for such disruptive events,” said Canan Gunes Corlu, Associate Professor of Supply Chain Management at BU Metropolitan College. “So, in the short-term, and medium-term, these inventories could be helpful.”

While that inventory can cover electronics companies for a short-term mining interruption, a prolonged closure could increase prices, meaning some semiconductors will be more difficult to produce. This could raise the specter of inflation, as semiconductors are prolific in almost every product we use today…