Worldwide shortages explained - unexpected Toyota connection

Informative video, then all of a sudden it’s about Toyota.

https://youtu.be/b1JlYZQG3lI

 

Don't want to watch a video. Cliff notes?

 

Toyota was the pioneer when it comes to "just in time" manufacturing. So most of the world now adheres to that policy as it saves companies major money by not having inventory sitting in warehouses waiting to be used. Which in turn makes more profit, higher stock prices, and more dividends. So when one link breaks or slows down in our global economy, it can and will have ramifications around the world. Which is what we are seeing now. From my very uneducation thought process.....

 

Shortages caused by ships backing up at the two ports on the west coast, and not enough containers going back to China causing a shortage of those.

Lack of surplus of parts linked to Toyota’s just in time manufacturing philosophy introduced back in the 50’s that many other companies have attempted to implement.

 

This past year has turned the global manufacturing world on it's head. I hope I am not right but the rest of this year has the potential to get much worse. Manufacturers are closing their books for the year due to limited supplies and labor. They are choosing to just maintain a smaller amount revenue and not deal with the headache of screaming customers. I have been in manufacturing since I was a kid and have never heard of anything like this.