Earlier this month, Tesla said it was able to double the weekly Model 3 production rate over Q1 "by rapidly addressing production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment".
"The sharp drop in consumer confidence and Japan-related supply chain bottlenecks will likely translate into real GDP growth of only around 2.4percentt in the first quarter, with a bounce back to the 3.5percentto4percentcent range in the second quarter," Behravesh said, revising his quarterly GDP growth estimate down from 4.2percentt.
Strategies were designed to address supply chain bottlenecks, areas correlated with low product availability, and areas with greatest potential for improvement and scale up, all tailored to each country's context.
The downside, however, is that consumers that have been benefitting from the supply-chain bottleneck will now face higher prices.
Supply-chain bottlenecks have frustrated governments scrabbling to install new renewable capacity.
For one, there will be limits to the sustainability of growth, because not enough potential consumers will be pulled into the middle class, and supply chain and distribution bottlenecks will limit the capacity to deliver goods and services.
But a big headache remains that is beyond the company's control: "I think the supply chain weakness is the biggest bottleneck to e-commerce in China," says Ms. Yu.
Measures that should be considered include updating the grid infrastructure, with the government underwriting investment if needed, and targeting support to companies that manufacture parts such as cabling, turbines, installation vessels and foundations to unblock bottlenecks in the supply chain.
As seaports, airports and bridges slow down, the worsening bottlenecks in the supply chain will create a kind of gridlock in the U.S. economy, just when it is slowing down anyway.
Future criticality for European and other industries, thus, is more likely to result from particular regions surpassing their adaptive capacities, and not mainly from limited availability or bottlenecks in the supply chain.
