U.S. companies could see delivery delays as Typhoon Shanshan hits Japan

U.S. companies that source goods from Japan should expect shipment delays of components that could span between 1 to 3 weeks, as the “severe tropical storm” called Typhoon Shanshan slashes across southern Japan, according to Everstream Analytics.

Disruptions in the country are multiplying as torrential rains and strong wind gusts force delays and shutdowns in flight operations, train services, and factory production.

Since the storm made landfall this morning, it has caused at least three deaths and forced mass evacuations as officials prepare for further impacts from flooding, landslides, and power outages, according to published reports.

Storms in the Pacific Ocean region don’t typically affect U.S. industry, but since Japan is such a central supplier of goods and equipment, manufacturing supply chains worldwide are being heavily impacted, according to Mirko Woitzik, global director of intelligence at Everstream Analytics.

Specifically, more than 50 factories have already shut down due to the typhoon, including dozens of key suppliers for the electronics, automotive, semiconductor, and medical equipment industries.

Affected companies include big names like Toyota Motor, Sony, Murata Manufacturing, Renesas, and Takeda, the report said. Overall, electronics suppliers account for 39% of all storm-shocked companies, followed by the automotive sector (26%) and the manufacturing sector (15%).