How is Manufacturing Being Impacted by the War in Ukraine?

war in ukraine impact

How is Manufacturing Being Impacted by the War in Ukraine?

There are many contributing factors to how a logistics company in Ukraine is impacted by the ongoing war. Read about them here.

As of now, there have been over 640,000 workers laid off from Ukrainian jobs.

Obviously, these layoffs pale in comparison to the thousands of casualties of the war in the country, but it is still important to note. With that many people out of work, the supply chain worldwide has been affected.

There are many contributing factors to how a logistics company in Ukraine will be impacted by the war, including manpower, supply and demand problems.

As American Civil War General William Tecumseh Sherman once said, “War is Hell.”

As the war shows no sign of resolving any time soon, let’s look at some ways that manufacturing is being impacted by the War in Ukraine.

Rising Inflation Means Higher Costs

The Russian invasion of Ukraine has led to massive inflation worldwide. Food is more expensive, gas is on the rise, and everyday goods are becoming more pricey by the day.

Ukraine manufacturing isn’t exempt from the effects of inflation. When it costs more for a company to produce goods, they pass that cost onto the consumer. 

Take mining, for example. Since so many miners have been conscripted into the military, hiring workers is more expensive. It takes more time to mine materials. As gas is so expensive, the cost of EU shipping and international shipping goes up.

All of this adds up to higher costs for the manufacturer and higher costs for the consumer. And if there’s one thing that no one likes, it’s higher prices, so consumers are now more upset with manufacturers.

Put simply, it’s a lose-lose situation.

Immense Difficulty Running a Logistics Company in Ukraine

It’s already difficult to run a logistics company in a time of peace. Running a logistics company in Ukraine during a time of war? That’s nearly impossible.

In addition to the typical struggles of running a logistics company, now Ukraine manufacturers have to deal with the difficulty of continuing business in an active war zone.

The workers that you could typically rely on day after day? They’re putting their lives on the line for the country.

EU shipping routes that your trucks drove on? If they haven’t been bombed out, they’re under the threat of bombing.

These manufacturing and international shipping difficulties make logistics a nightmare in Ukraine. With logistical issues come supply chain shortages. Not only is it harder for Ukrainian manufactures to ship out supplies, but it’s also harder for them to import materials as well.

War has Thrown a Wrench Into Manufacturing

The War in Ukraine has led to a massive impact on the global supply chain. It’s impressive that a logistics company in Ukraine is even operating in a time of war, but that’s what’s necessary to keep the whole world moving.

The Ukrainian War has led to higher rates of inflation and logistical difficulties inside and outside of the country. More than that, it doesn’t look like it will be over any time soon.

If you’re looking to find the right kind of employee for your manufacturing job, get in touch with us today. If you’re looking for a supply chain job, check out our job board to find the position that’s right for you.

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