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Don’t wait for delays – move your production from the East to Poland

31 January 2024

The beginning of the third decade of the 21st century has not been a time of security and stability in the global economy. Pandemics, inflation crises or wars in Ukraine and the Middle East have had a significant impact on business, including the logistics industry.

Due to a significant drop in revenue, the well-known Danish company, which has a one-sixth share of the global sea fright market, had to lay off nine per cent of its workforce – around 10,000 employees. The reason for this decision was the economic fluctuations from the Covid-19 pandemic.

The situation is further complicated by the tense political situation. Since mid-November last year, container ships have been attacked in the Red Sea by Huti militants. This shipping route is one of the most important elements of international logistics. The Suez Canal connects Asia to Europe, with more than 20,000 ships using it annually. The alternative route goes around Africa and extends the voyage time by about nine days. Therefore, Yemeni rebels, taking advantage of the importance of this route, want to influence the Palestinian-Israeli conflict by blackmail. According to a report by the Kiel Institute for the World Economy, as a result of the attacks, the number of containers crossing the Red Sea has dropped by almost 70%, significantly disrupting supply chains and potentially contributing to component unavailability, delays and inflation.

In the face of the insecure economic and political situation, it is worth shortening supply chains and moving production from the Far East to Poland. This not only reduces the risk of delays, but also increases project security.

At JM elektronik, we have expanded our production area, making us ready to respond to the reshoring trend and meet your needs. Our company is located in the industrial heart of Poland, in Silesia, at the intersection of the A1 and A4 motorways, just 45 km from Katowice airport. We look forward to working with you.