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Ukrainian Factories Face Supply Chain Stress

Materials shortages and logistical barriers are impacting Ukraine’s industrial economy, according to The Wall Street Journal (subscription).

Factories struggle to maintain production: Ukrainian factory owners report that, since Russia’s invasion, dangerous roads, fragile utility networks and supply chain problems have made it difficult to fulfill orders and keep assembly lines running.

Some factories shift gears: Ukraine has a sprawling agricultural sector that is held up by small factories that provide the equipment and materials necessary to cultivate the land. Now, many of these factories are also helping in the war effort by making anti-tank barriers and other materials.

Factory owners remain resilient: “Owners and operators of Ukrainian farms and factories say keeping their businesses running is as important to Ukraine’s war effort as serving in a territorial defense unit. If Ukraine pushes Russia out of their country, they say, their efforts can help fuel an economic recovery.”

Damage to package producers: Russia’s assault has significantly damaged certain areas of Ukraine’s industrial economy.

  • Several package-producing factories have been damaged or destroyed, reducing production by about 60%. This loss has been felt throughout the supply chain, limiting businesses and factories’ ability to store and transport goods as they try to stay afloat.
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