CLAREMONT, CALIFORNIA – January 16, 2025 –  Lisa Anderson, MBA, CSCP, CLTD, President of LMA Consulting Group Inc., and a recognized leader in manufacturing and supply chain strategy, warns that the recent devastating fires in Los Angeles County will have far-reaching impacts on supply chains well beyond the immediate area. With over 100,000 people displaced and critical infrastructure, IT systems and power grids affected, businesses across industries must prepare for disruptions that could persist for months.

“The LA fires are a stark reminder of how interconnected supply chains truly are,” says Ms. Anderson. “Even businesses outside the fire zones are experiencing ripple effects from power outages, infrastructure strain and shifting consumer demand. To navigate these challenges, companies must proactively address demand planning, bolster supply chain resilience and implement robust backup strategies.”

Immediate and Long-Term Impacts on Supply Chains

Infrastructure Strain and Power Outages

The fires have severely impacted power grids, IT systems, and other critical infrastructure, creating widespread disruptions beyond the directly affected areas. Businesses experiencing power outages are struggling to maintain operations, highlighting the need for contingency plans and backups for essential systems.

Shifting Retail Demand

With over 100,000 people displaced, consumer demand in retail has shifted to far-reaching geographic areas throughout Southern California. Businesses must address these changes through strategic demand planning to align inventory and supply with rapidly changing market conditions.

Construction and Building Supply Chains

In the long term, rebuilding efforts will place increased pressure on building materials, construction services and related supply chains. Companies in these industries must prepare for heightened demand and potential shortages.

Regional-Scale Disruption

The scale of the displacement caused by the fires is equivalent to the population of a small state or region in other parts of the country. This level of disruption is expected to significantly impact supply chain flows, including labor availability, transportation networks and demand patterns.

Strategies for Business Resilience

Ms. Anderson advises businesses to take immediate steps to mitigate the effects of the fires and prepare for longer-term disruptions. These strategies include:

Implementing Backups for Critical Systems: Ensure there are contingency plans and redundancies for IT, power and other infrastructure to maintain operations during outages. Additionally, having manufacturing options outside of the primary location can provide vital flexibility, ensuring production continues even if primary facilities are impacted by power outages or other disruptions.

Proactive Demand Planning: Use demand planning strategies, predictive analytics and SIOP (Sales, Inventory, and Operations Planning) processes to quickly adapt to changing retail demand patterns and other affected sectors.

Collaborating with Key Suppliers: Strengthen partnerships with suppliers to secure reliable sources of materials, particularly for industries like construction and IT that will see increased demand.

 Preparing for Rebuilding Efforts: Anticipate shifts in supply chain needs related to rebuilding infrastructure, housing and other essential services.

“Disasters like the LA fires underline the importance of supply chain resilience,” adds Ms. Anderson. “Businesses that proactively address these disruptions will recover faster and gain a competitive edge in meeting customer needs during challenging times.”

About LMA Consulting Group

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., specializing in manufacturing strategy and end-to-end supply chain transformation. A recognized supply chain thought leader, Ms. Anderson has been named among the Top 40 B2B Tech Influencers, Top 16 ERP Experts to Follow and Top 10 Women in Supply Chain. Ms. Anderson has been featured in Bloomberg, Inc. Magazine, the LA Times, PBS, and the Wall Street Journal. She is an expert on the SIOP process and has published an ebook. SIOP: Creating Predictable Revenue and EBITDA Growth. Most recently, Ms. Anderson introduced Supply Chain Bytes, a video series featuring short, under-2-minute updates on the latest trends and insights in supply chain management, designed to keep businesses informed and agile in a rapidly evolving environment. For more information on supply chain strategies, sign up for her Profit Through People® Newsletter or visit LMA Consulting Group.

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Media Contact:
Kathleen McEntee, Kathleen McEntee & Associates, Ltd., (760) 262 – 4080, KathleenMcEntee@KMcEnteeAssoc.com