How Russia & Ukraine Crisis will impact San Diego Businesses

Strategic steps companies can take to prepare, prevent and profit

MEDIA ALERT:

Kristi Zimsky

404.944.0414

kzimsky@erwoodgroup.com

 

How Russia & Ukraine Crisis Will Impact San Diego Businesses

Strategic steps companies can take to prepare, prevent and profit

 

San Diego, CA — The invasion of Ukraine by Russia might seem miles away, but the conflict will create many challenges for San Diego businesses and the local economy.  According to Keith Erwood, Business Preparedness Expert of the ERWOOD GROUP, companies must brace for higher costs at the pump, continued food inflation and energy supply issues.

 

“The fallout from COVID-19 was already taking a heavy toll on local business, but now San Diego companies are going to continue to face a variety of complex challenges,” said Erwood. Unfortunately, these challenges will likely mean passing increased costs to the San Diego consumer.

 

Pain at the Pump

Erwood warns if any Russian oil flows are disrupted by the crisis, oil prices could easily jump from current prices of $90 to $120 a barrel.   This comes at a time when gas prices in San Diego County are already at a record-high.  

 

“For small businesses on a tight budget, the rising gas prices could be potentially crippling.  Especially for those that rely on company vehicles, or transporting their goods and products a long distance,” said Erwood.  

 

Food Inflation

The threat of war between Russia and Ukraine is driving wheat prices higher on both sides of the Atlantic and paving the way for worries that food inflation will continue to be a huge challenge for both business owners and consumers.  This is because Russian and Ukraine, combined, account for 29% of global wheat exports, according to the U.S. Agriculture Department.  For this reason, any interruption to the flow of grain out of the Black Sea region will have a major impact on prices and further adding to the food inflation in the local markets. 

 

Energy Supply Issues

San Diego businesses are not only facing higher gas and food prices but the uncertainly in the energy markets created by Russia and Ukraine crisis is driving up national gas prices.  This will mean business owners will have to shell out more money to provide heat and electricity to their office spaces.  Higher energy prices would also make it more expensive to fly and keep transportation and input costs elevated for businesses already grappling with surging inflation.

 

Steps Companies Can Take to Prepare, Prevent & Profit

“With companies scrambling with increasing energy and commodity prices, supply constraints, and higher gas prices, it may seem like a ‘glass half empty scenario’ for our businesses.  But these challenges should be seen as an opportunity to take action to prepare, prevent and even profit by thinking beyond short-term challenges to the long-term company survival,” said Erwood.

 

Digital Transformation

During inflationary periods investing in technologies like creating a centralized information system to support more efficient back-office processes, can help boost a company’s growth and profits. In addition, using robotic process automation and intelligent document processing can free up workers and make an employee much more effective at creating value and vision, than being stuck with sorting paperwork. 

 

Visibility Spending Costs

Managers need to understand where money is spent and who is spending it.  This process of establishing visibility of spending by cost categories enables the right level of accountability throughout the company to ensure all decisions are made, knowing the full impact these costs will have on profits.

 

Prepare for Cyber Threats

US officials warned this week that Russia might lash out to pending sanctions through disruptive cyber-attacks and critical infrastructure. For this reason, it is important companies identify risks and implement strategic measures to keep their companies safe and profitable.

 

About ERWOOD GROUP

At the ERWOOD GROUP, our business is helping your business stay up and running after and ideally during a crisis or disruption.  Whether you need help with business continuity planning, crisis, and incident management, or need better disaster recovery options, we’ve got programs and services to make your business more resilient so that you can prepare, prevent and profit even in a disaster. For more information: erwoodgroup.com

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Link

Supply Chain Disruption Forcing San Diego Businesses to Make Tough Decision This Holiday Season

MEDIA ALERT:

Nov. 4, 2021

Kristi Zimsky

404.944.0414

kzimsky@erwoodgroup.com

 

WHAT:

Supply Chain Disruption Forcing San Diego Businesses to Make Tough Decision this Holiday Season

• Things will get worse before they get better
• Crisis Management Expert says disruptions are an opportunity, not a crisis
• 5 steps every local business should take to remain resilient during these challenging times

WHY:

The global supply chain crisis, which includes thousands of unloaded containers with merchandise lingering on ships in major US ports, coupled with skyrocketing gasoline prices, a worker shortage and a huge increase in consumer demand, is forcing local companies to make some tough decisions heading into the competitive holiday season.   

 

WHO:

According to Crisis Management and Business Continuity Expert, Keith Erwood, Business Preparedness Expert of ERWOOD GROUP, companies must decide three important questions:  will they pay higher prices upfront to receive overseas goods, pass the increased costs onto their customers, or retreat from overseas markets, all together.

 

Keith Erwood: “Our data and research indicate, things will get worse, before they get better.   However, the supply chain disruption should be viewed as an opportunity, not a crisis, for our San Diego business owners. There are steps companies can make to ensure resiliency and identify key strategies you can take to build a stronger supply chain.’

 

5 STEPS TO SURVIVE SUPPLY CHAIN DIFFICULTIES:

To help local businesses survive this holiday season, Crisis Management Expert, Keith Erwood, Business Preparedness Expert of ERWOOD GROUP has outlined strategic steps to handle the supply chain disruption:

 

Diversity of Supply Base

• To help untangle the global supply chain mess, businesses need to move away from depending on a single supplier overseas, like China or Vietnam and find local suppliers where possible to fill critical components or materials. This is because local suppliers can deliver products much quicker. It is also easier for a supplier to coordinate a shipment across the neighborhood than around the world.

 

Forecast Demand

• Companies need to focus on delivering quality best-selling products to their consumer-base, instead of trying to keep shelves packed with non-essential slow-moving items.
• Erwood said, “There is a false narrative being shared in the media right now that holding and buying increased inventory will allow businesses to meet high demand over the holidays. This is a mistake.  If demand for a product decrease, deep inventory can become a financial liability and environmental waste.  This is especially true for technology, fashion, and perishable products that rapidly lose value and salability over time.”

 

Be Honest

• Research and data at the ERWOOD GROUP predict supply chain imbalances will continue into June 2022, due to inflation, workers shortage, and the impact of the Delta variant around the world—especially in South Asia.
• Erwood said, “For this reason, you must be very honest with your customer, even when it hurts.

 

Plan for Recovery

• Companies should think beyond short-term disruption to long-term company survival. Disruption can be seen as an opportunity to thrive and make tough business decisions, like a long-desired reorganization or cutting non-performing products and customers.

 

Buy Local

• It’s no secret supply chain issues have taken a toll on small businesses importing materials. For this reason, San Diego consumers must start buying from local businesses to change how they operate. By relying less on goods and services from outside markets you can boost regional and local economies.

 

GUEST BOOKING:

Keith Erwood is available for live guest segments. To schedule your interview, please contact, Kristi Zimsky, Publicist, ERWOOD GROUP, 404.944.0414, kzimsky@erwoodgroup.com

 

About ERWOOD GROUP

At the ERWOOD GROUP, our business is helping your business stay up and running after and ideally during a crisis or disruption.  Whether you need help with business continuity planning, crisis, and incident management, or need better disaster recovery options, we’ve got programs and services to make your business more resilient so that you can prepare, prevent and profit even in a disaster. For more information visit erwoodgroup.com

Link to Press Release – Supply Chain Solutions