b'SUPPLY CHAINTHE STATE OF THESUPPLY CHAINWILL IT RETURN TO THE PRE-COVID NORM? By Warren HeeleyTHE CONVENTIONAL WISDOM at this time is that mosthave industry experts agreeing that a significant improvement of the world has moved on from the pandemic (excepthas occurred over the last six months. However, they also warn for China); therefore, supply chains will return to normal.that this improvement may be followed by a drop in consumer Unfortunately, this is not the case. The world has permanentlydemand and they raise the ominous possibility of a recession.changed and supply chains are going to face continuing challenges for decades to come.Belief that the supply chain is moving back or will ever get back to a pre-pandemic normal seems unrealistic. There are still This quote appeared in the May 18, 2022 issue ofmany ongoing challenges that will need to be sorted out. This Freightwaves newsletter, which calls itself the nerve centre ofincludes the war in the Ukraine, the shortage of labour and the global supply chain. continuing COVID-19 challenges that could causefuture disruptions.The article also stated that supply chains will be under constant threat of disruption for the next decade. TodaysKEY CHALLENGESsupply chains have to contend with wars, the worldwideThere are three key challenges for the international supply population decline and the differing priorities betweenchain before it returns to its new normal: labour shortages, governmental/environmental policies while optimizing peaceful trade and supply chain technology.supply chains.Labour: For decades, product manufacturing has been The global supply chain has improved considerably since itsrelocated to countries where cheap labour and materials darkest days in 2021, when all-time high freight rates andwere readily available to reduce costs. Lower-cost products unusually long shipping times prevailed. The easing of theincreased availability, which in turn kept pricing and inflationsnarls plaguing the shipping industry during the pandemicin check.28Quarter 32022 BUILDERSDIGEST'