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‘Lose, lose’ for producers, supply chain and John Deere if strike isn’t resolved
There is still no agreement between Deere & Company and its union employees as the labor strike continues for the ninth day.
Erkut Sonmez, an associate professor of supply chains with the University of Nebraska-Lincoln, says farmers were already struggling to get parts and equipment and that’s likely to get worse without a solution. “It’s going to be lose, lose from John Deere’s perspective and the supply chain perspective,” Sonmez says.
He tells Brownfield the uncertainty has created some panic buying and if the strike isn’t resolved soon, it will have ripple effects outside of the supply chain. “There are concerns about crop insurance because you need to harvest before a certain date,” he says.
He says there are transportation and production backlogs and if parts and equipment aren’t moving through the supply chain, delivery times could double.
Erkut Sonmez:
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