China expecting power shortages this summer: It’s about the infrastructure

In the case of the United States, we’re just not spending money on it.  In the case of the Chinese, they just can’t build it fast enough.  From the People’s Daily Online on April 24, 2012:

As summer nears, the country will likely experience a nationwide energy shortage of 30-40 million kilowatts of power during peak periods of energy consumption, with the worst shortfalls expected for China’s southern and eastern regions, the China Electricity Council (CEC) predicted Monday.

Northern and central China will also face power outages this summer, although the situation in the country’s northeast and northwest regions will not be so severe, the Council added.

The CEC is urging local governments to implement power rationing plans as soon as possible to balance energy supplies with demand.

Factories have long had to make their own arrangements to insure a steady supply of power to keep their production lines running.  Power is more than just “the lights going out.”  If you’re operating things that require a constant stream of power to properly operate (such as welding devices or stamping presses), then it is critical because without a steady, level supply of electricity, it will lead to finished products that do not meet the necessary specifications to get the job done.

One of our clients expressed quite succinctly the importance of this in their supply chain:

As an organization we work closely with our supply base to minimize the issues surrounding power shortages by completing upfront audits, checking for back-up power generators, and have on-going communications. It is vital suppliers manage their raw material, labor, and production schedule to allow for flexibility within their supply chain.

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