Two months after earthquake in Japan, parts shortages continue to be felt worldwide

Supply chain problems from the after effects of the Japanese earthquake and tsunami on March 11 are continuing to cause problems for Japanese manufacturers, with ripple effects being felt worldwide.  Some Japanese manufacturers are responding to the problem by streamlining their supply chains and dropping some of their suppliers.  Japan’s Cabinet Office has issued estimates that manufacturing operations in the country will be down by ¥250 billion (US$3.08 billion) in the April-September period because of the parts shortages.  The industrial production index in Japan fell 15.3% in March due to production cutbacks by manufacturers, including automakers.  Worldwide, the damage from the parts shortages in Japan continues to unfold.  Ford Motor Co. had to suspend operations at one plant for a week due to parts shortages and closed plants in China, Taiwan and South Africa for two weeks. Toyota saw a shortage of Prius vehicles in the U.S.  (May 12, 2011)