Eurozone crisis could impact supply chainsThe ongoing economic crisis in the Eurozone could have an affect on supply chains that rely on European suppliers, manufacturers or markets in the coming year. Many countries in the European Union have been burdened with unsustainable debt loads, high unemployment and bailouts, which could make businesses around the world hesitant to continue partnering with European companies or relying on these markets in the coming years.

The economic crisis seen in countries that use the euro has also led to concerns that the currency could collapse. The EU's single-market system could result in an unraveling economy for countries that rely on the euro. Those that don't, such as the United Kingdom and Poland, could pull even further back and see the consequences on their own economies if this were to occur.

Europe's crisis could hurt businesses
Businesses that rely on European based companies for their procurement may find that the cost of purchasing goods from the market could become prohibitively expensive, especially when greater cost savings can be achieved by purchasing raw materials or manufacturing consumer products in emerging markets in Asia. They may begin using tactics such as strategic sourcing to help cut down on expenses while also guaranteeing their products are delivered in a timely fashion. Others may find that relying on European companies to handle their logistical operations may also become more expensive as countries in the Eurozone seek increased revenue and many have debated raising on taxes on the wealthy and businesses.

Companies that sell consumer goods may also determine that the European market could no longer be as profitable as it once was. With high unemployment numbers that continue to rise in many countries, European consumers without jobs or income may now be unable to purchase new products, cutting into a company's profits and limiting its sales on the continent.

With businesses across the globe being pressured to cut costs and minimize risks in the countries in which they operate, some companies could be pressured to find new suppliers or limit sales in Europe to focus on markets with more growth. Others may find themselves pressuring their European partners to cut expenses to ensure their EU projects remain a profitable part of their business models and are not cut out of their supply chains.
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