When an auto assembly plant shuts down for several weeks and its workers are furloughed, a whole community and its businesses feel the ripple effects of that closure. For instance, when an auto assembly plant in Ohio was closed for several weeks last summer, we heard anecdotal reports of an outsized drop in bookings at a nearby hotel chain.
The semiconductor shortage highlights the global nature of many supply chains, where a disruption in one link can have wide and unexpected effects across the globe and in many industries.