How California Wildfires are Affecting Supply Chains

While no major warehouse impacts have been reported, a spike in building materials demand could create shortages.

Supply chain impacts from the Southern California wildfires have been minimal, according to logistics experts. However, several experts noted challenges could come later once people begin to rebuild infrastructure and homes.

The wildfires in Southern California wiped out several neighborhoods, closed streets and highways and upended the lives of many residents in Altadena, Lake Hughes, Pacific Palisades and San Diego County.

The fires have not been 100% contained, according to a California Department of Forestry and Fire Protection map last updated on Jan. 27. But progress is being made as the Eaton fire is at 99% containment while the Hughes fire is at 98% containment. Acres impacted from all four active fires is at 54,519, according to the Cal Fire map.

Warehouses avoided direct impact

The wildfires had little to no impact on warehouses since most of them were outside the fire zone, Lisa Anderson, president of LMA Consulting Group, told Supply Chain Dive in an interview. Still, there are short-term challenges presented for some businesses.

“Even businesses outside the fire zones are experiencing ripple effects from power outages, infrastructure strain and shifting consumer demand,” Anderson said.

Anderson said she has a client that supplies building products. The client’s manufacturing facility was without power for about a week due to preventative shutdowns, although their area wasn’t in the path of the fires. 

There are several warehouse and logistics centers in Southern California but most are in the Inland Empire, Anderson said. Some locations that make up the Inland Empire include Riverside, Upland, Fontana and San Bernardino.

Full story at Supply Chain Dive