Fukushima's Hidden Fallout

Four ripple effects from Japan's disaster. 

APRIL 13, 2011

Global Supply Chain

The Japanese government estimates that the damage from the March 11 earthquake alone will top $300 billion, already making it the costliest natural disaster in history. But its broader impact on the global economy may prove even more profound.

Since the 1980s, more and more companies, particularly in high-tech industries, have come to rely on Japanese-pioneered "just-in-time" manufacturing, maintaining low inventories and bringing in components as needed, thanks to cheaper shipping and modern tracking software. More often than not, those high-tech components are manufactured in Japan: The country produces 89 percent of the world's aluminum capacitors, 46 percent of lithium-ion batteries, and 87 percent of gaming software. One factory 40 miles west of the Fukushima plant accounts for 20 percent of the world's silicon wafers -- vital for computer memory. The factory is now shuttered, and high-tech firms like Apple, Hewlett-Packard, and Lenovo are bracing for shortages.

With factories still recovering from earthquake and tsunami damage, manufacturers have warned that products ranging from Apple's iPad to Boeing's 787 Dreamliner will face disruptions and possible shortage. The effects of the quake are evident in the popular Toyota Prius, manufactured entirely in Japan: In California dealerships, the car was selling for an average of $300 below invoice price before the quake. It's now up to $1,000 above invoice.

Following disruptions in the wake of Hurricane Katrina and last year's Icelandic volcano eruption, many industry experts are beginning to question the practicality of just-in-time manufacturing. Ironically, it has also reinforced Japan's centrality to the global supply chain, even after two "lost decades" of economic stagnation. But a similar crisis in China's heavily industrialized Guangdong region, for example, could have even more wide-reaching effects.

KAZUHIRO NOGI/AFP/Getty Images

 

MASINI

10:17 AM ET

April 16, 2011

I am thinking what I could to

I am thinking what I could to get us men. All day long we think only about money. I got to do everything for money, we are slaves to money. Fukusima disaster at one side but is much more important to us, mankind. Radoiactiv cloud came across the northern hemisphere and this is the worst thing. Our kids will suffer physically from the accident. That should worry us most. This disaster will lead to flourishing economies in some states, but on the whole, we humans will suffer in time due to radiation. There would have to intervene very quickly. I have a bussines whit capaceala de albine and have some problems because of Fukushima.

 

ALANNEWMAN

1:36 PM ET

May 9, 2011

Next generation is the victim

Very true, the one that suffers is actually our next generation. My friend who works in a local shoe lifts company said that due to denial and deception inherent in the nuclear bureaucracy and industry we will probably never know how narrowly Japan, and indeed the world, have escaped ruch poparcia mutual assured destruction in the range of tens of millions of people.

 

MIXEDCONTENT

10:53 PM ET

April 17, 2011

Evaluate safety *and* financial health

The belief that there's a hard choice between building and operating nukes, on the one hand, and power shortages and/or global warming on the other, is rarely questioned. But perhaps it should be. Safe or not, they're a waste of money, and solve no problem that can't be solved, better and at lower cost, in other ways.

The thumbs-down verdict from the investment community is summarized by Amory Lovins of Rocky Mountain Institute: "...since 2005, three years before the financial crash, [nuclear power projects have] been unable to raise a penny of private capital, simply because the cost and risks are unfinanceable. Wall Street will not invest in them - it’s an utterly unfinanceable technology, and it’s obvious why - it’s grossly uncompetitive." That's Wall Street, not tree-huggers, saying "No nukes."

(Web-search: "nuclear power" "grossly uncompetitive")

 

DRIFTWOOOD

10:56 AM ET

April 23, 2011

Though nuclear now unwelcome, realistic other options limited

it's a massive undertaking when shifting away from an entrenched industry like nuclear power. Despite there being more ecologically sound and less dangerous options,it comes down to some simple things like cost and supply. Solar, wave power, wind power are all nice ideas, ones I support, but they can't fit the needs of most communities and even if they could, the costs for electricity would be much higher.

As a group, humans don't seem to make the great decisions on what is best in the long run. Cheap power but the chance of a radioactive leak that will contaminate the water and ground for untold years is acceptable FYI, Chernobyl is not a fair comparison to Fukushima, The obvious is that one was due to an enormous earthquake and the other was part human errors and one of the child reactors parental control software malfunctioned, giving false readings The Japanese were much more forthcoming, while the Russians hid the accident and it was detected by Finland(?) well ahead of any Soviet acknowledgement. Still, they are both terrible disasters and underscore the issues of balancing meeting the power needs of a country and safety.

Even moving to similar technologies, such as thorium reactors are met with skepticism and plans for existing nuclear plants continue. Politicians will keep supporting them as people won't stand for high energy costs but will lament the accidents like Fukushima. In time, the accident will fade from the public's consciousness and more nuclear power plants will be built. Until there are serious options that can provide an order of magnitude better energy supply and costs, well see more and more nuclear plants.

 

DRIFTWOOOD

11:02 AM ET

April 23, 2011

Though nuclear now unwelcome, realistic other options limited

it's a massive undertaking when shifting away from an entrenched industry like nuclear power. Despite there being more ecologically sound and less dangerous options,it comes down to some simple things like cost and supply. Solar, wave power, wind power are all nice ideas, ones I support, but they can't fit the needs of most communities and even if they could, the costs for electricity would be much higher.

As a group, humans don't seem to make the great decisions on what is best in the long run. Cheap power but the chance of a radioactive leak that will contaminate the water and ground for untold years is acceptable FYI, Chernobyl is not a fair comparison to Fukushima, The obvious is that one was due to an enormous earthquake and the other was part human errors and one of the child reactors parental control software malfunctioned, giving false readings The Japanese were much more forthcoming, while the Russians hid the accident and it was detected by Finland(?) well ahead of any Soviet acknowledgement. Still, they are both terrible disasters and underscore the issues of balancing meeting the power needs of a country and safety.

Even moving to similar technologies, such as thorium reactors are met with skepticism and plans for existing nuclear plants continue. Politicians will keep supporting them as people won't stand for high energy costs but will lament the accidents like Fukushima. In time, the accident will fade from the public's consciousness and more nuclear power plants will be built. Until there are serious options that can provide an order of magnitude better energy supply and costs, well see more and more nuclear plants.

 

LEEWTOMINSKI

6:05 PM ET

April 24, 2011

Global Supply Chain Of Consumer Electronics

The earthquake and tsunami has obviously had a disastrous effect which we have all seen. Clearly it will take Japan a long time to repair the damage. Consumer electronics products are about to be hit by an after effect due to a number of electronics factories being hit that either manufacturer finished products or components. This doesn't seem to have been reported. I am a retailer in the consumer electronics business http://www.soundandvision.co.uk and I am beginning to see the product supply chain being affected with short supply of a number of models from Sony and Panasonic. The effect of this is such that it will affect many different manufacturers even non Japanese because they use Japanese components. Besides the affect on the factories which has an obvious effect the other reason they are being affected is because there is a shortage of electricity due to a number of nuclear power plants being out of action which is meaning that the factories that haven't directly been affected are not operating at full capacity also. Depending on the extent of this it could result in higher than expected prices later in the year.

 

ADAM75

8:50 AM ET

May 6, 2011

"The Japanese government

"The Japanese government estimates that the damage from the March 11 earthquake alone will top $300 billion, already making it the costliest natural disaster in history. But its broader impact on the global economy may prove even more profound."

OMG foks, if you think about it, it such a huge number. Poor Japanese people that were hit by this accident. I wonder if it was everything right according to the book of safety, I mean if everything was 100 technically all right.

I think that from now on nucler power plants will be much more criticized by us normal folks, because I fear there might be another so called earthquake, although I heard that it was artifically produced by government.

Who knows, who is right, but one thing is sure, I pray for those lost souls out there,

All the best, Adam

 

JEREMYFRAMER

11:53 PM ET

May 10, 2011

It is amazing how much damage

It is amazing how much damage was done because of this earthquake. I really do not know how japan is going to make a comeback from this. anodized cookware. It really is a shame.

 

TUTUMO98

2:11 PM ET

May 13, 2011

this is huge

This is huge that the Japanese government estimates that the damage from the March 11 earthquake alone will top $300 billion, already making it the costliest natural disaster in history onlinelivetv. But its broader impact on the global economy may prove even more profound.

I would not have estimated such a high number.