For example, my wife is in retail, she placed her normal orders(months early this year) through the normal vendors. Vendors then place their orders to the manufacturers(a lot in china). Unless a vendor is paying cash upfront to the manufacturer, then they will not be getting paid until the orders are delivered. Some won't even get paid until the product arrives at the retailers and they pay. At net 30, and a 3 month backlog just at the ports. It will be a question of how long the manufacturers can operate without cash flow. And now with china's economic collapse coming, I can't imagine banks will be lending like they normally would. China is in big trouble.
For example, my wife is in retail, she placed her normal orders(months early this year) through the normal vendors. Vendors then place their orders to the manufacturers(a lot in china). Unless a vendor is paying cash upfront to the manufacturer, then they will not be getting paid until the orders are delivered. Some won't even get paid until the product arrives at the retailers and they pay. At net 30, and a 3 month backlog just at the ports. It will be a question of how long the manufacturers can operate without cash flow. And now with china's economic collapse coming, I can't imagine banks will be lending like they normally would. China is in big trouble.