Matthew Mitchell said many large manufacturers have had significant challenges “just sourcing the basics” such as metals and raw materials, particularly as China shut down production earlier this year due to COVID-19. “We’re going to continue to see that, because China isn’t fully back online yet,” he said.
Additionally, “I think we see a lot of organizations in Iowa diversifying not only inputs, but also diversifying buyers and frankly, that conversation started with ag products,” he said.
The coronavirus pandemic has also turned a familiar axiom on its head, Mitchell said.
“It used to be said that ‘whenever America sneezes, the rest of the world catches pneumonia,’” he said. “Well, I think what this crisis has brought to light is that whenever China catches corona, the rest of the world’s supply chain could be put on life support.”