The weather compounded that, and it’s only going to be more difficult as we try to catch up.” “We already had tight logistics situation in the country it’s hard to get trucking. “The winter storm took what was already a tight logistics situation and exacerbated it,” Derry says. Amazon also closed some sites in the South and Midwest due to the storm. Retailers like Walmart temporarily closed stores across Texas as well as the Midwest due to the storm. New Mexican grocery stores also felt the pinch, as they didn’t receive deliveries coming from Texas. Grocery store aisles were temporarily depleted of some items as deliveries couldn’t be made, and some chains limited purchases on certain items. Some automakers closed facilities - a Toyota plant and General Motors assembly facility were among them - with some citing the move as a measure to minimize energy usage.ĭue to ice and snow, trucking and railway disruptions occurred and deliveries were delayed Union Pacific alerted customers to expect at least a 72-hour delay in mid-February. The storm caused temporary closures of semiconductor chip production, an industry already facing shortages, including temporary closures of semiconductor production in Austin at Samsung Electronics and other plants.

One of the industries most impacted was automotive. One of the storm’s biggest supply chain implications was supply continuity issues. Plus, it’s a major transportation hub - highways and railways run through the state, connecting it and Mexico to other parts of the U.S. (On average, a typical state would make up about 2 percent.) It’s home to many major industries - semiconductor manufacturing, oil and gas, petrochemicals, food and agriculture, and aerospace and defense, among others. Preliminary estimates from The Perryman Group, an economic consultancy based in Waco, Texas, put economic losses from the storm between US$197.2 billion to $295.8 billion - with personal-income losses amounting to $56.8 billion to $85.1 billion and gross-product losses of $85.8 billion to $128.7 billion.Ĭonsider: Texas makes up about 9 percent of the nation’s gross domestic product (GDP), according to the U.S. “On a personal level, going without drinking water or heat is devastating for individuals and families,” he says, “And from an economics point of view, it’s a big deal when Texas shuts down.” When Texas goes offline, it greatly impacts the rest of the country, Institute for Supply Management ® (ISM ®) CEO Thomas W. While Texas is, for the most part, back up and running, the week-long winter storm that slammed the state in mid-February resulted in blackouts, road closures, loss of water service, burst water pipes and store closures - and a ripple effect of supply chain and economic repercussions in Texas and elsewhere.

Texas freeze 2021