The Friday Report: February 11th, 2022

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Renewable Energy Growth Continues Despite Supply Chain Disruptions

The winds of change continue to blow. Deployments in the renewable energy sector picked up from 2020 to 2021 and the trend is anticipated to continue to keep pace, despite supply chain challenges. Industry experts expect that supply chain disruptions will wane as more manufacturing capacity is increased internationally.

Wind and solar are on track to continue to remain the bulk of the added capacity additions in the power system. The Build Back Better bill remains stalled in the Senate and provisions for updating the permitting process for hydroelectric plant renewal remain in limbo.

For more information, please continue reading here.

Washington State Warehouse Cited for Mass COVID Outbreak in Warehouse Workforce

Washington state labor regulators found that a food distribution warehouse violated COVID safety regulations. United Natural Foods Inc., Capstone Logistics, and Prime360 were fined $285,000. The investigation into a widespread COVID outbreak across 10 counties began after a referral from a local county health department.

The owner/operator of the 1 million square foot warehouse, United Natural Foods was fined $140,000 for:

  • Permitting workers with COVID into the workplace
  • Failing to report hospitalized COVID workers
  • Verifying worker vaccination status
  • Failing to enforce the use of masks in the workplace

Capstone Logistics received a fine of $75,400 for similar violations involving its 200 employees and was ranked as a “severe violator”. 54 of its workers tested positive for COVID and one was hospitalized.

For more information, please continue reading here.

Russian Supply Chain Disruptions Likely Warns White House

Out of an abundance of caution, the White House recently warned the semiconductor chip industry to diversify its supply chain in case Russia decides to retaliate by blocking access to critical materials.

Neon, palladium, and other materials are used in the production of semiconductors and Russian and the Ukraine. Over 90% of American semiconductor-grade neon supplies originate in Ukraine. 35% of U.S. palladium supplies are from Russia. White House representatives have recently been encouraging the sourcing of these key products from other nations.

Neon is used in the lasers that are used to manufacture chips. A bioproduct of Russian steel manufacturing, neon is then purified in Ukraine. Although the supply may not be disrupted if military action is taken, it is likely to drive prices up.

For more information, please continue reading here.

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