Patrick Penfield
Patrick Penfield is a professor of practice in supply chain management and director of Executive Education at the Syracuse University Whitman School. He provides insight below about how the Russia-Ukraine conflict could trigger major problems within the supply chain and lead to double digit inflation in the United States. The material below can be quoted directly. Professor Penfield is also available for interviews.
Penfield says:
“Unfortunately, the horrific Russian invasion of Ukraine will cause more supply chain issues in 2022.
“Russia and Ukraine account for 30% of global wheat sales, 80% of sunflower oil and 20% of global corn sales. The global wheat harvest in 2021 was the smallest harvest since 2002 which would cause prices to go up. In addition to the food commodities produced by both countries, Russia is the second largest oil producer in the world and Ukraine supplies 70% of the Neon gas used in microprocessor chip production. If both countries are unable to supply these products, gas prices could reach record levels at the gas pump (over 5.00 per gallon) and the lack of Neon gas production from Ukraine will further impact the availability of microchip processors and increase microchip lead times to over 52 weeks.
“Not having these commodities from Russia and Ukraine in the supply chain will cause global food, electronics and car supply disruptions and price increases. If the invasion of Ukraine by Russia lasts throughout 2022, we will see double digit inflation in the United States and continued issues throughout the global supply chain.”
For more information or to schedule an interview please contact Daryl Lovell, Media Relations Manager, at dalovell@syr.edu or Keith Kobland, Media Relations Manager, at kkobland@syr.edu.
