How Russia's Invasion Of Ukraine Impacts The Cleaning Industry
Over the past month, many top American brands are either distancing themselves are cutting business ties altogether with Russia in response to Russian president Vladimir Putin’s invasion of Ukraine. There are several reasons for this trend, chief among them being to send a message condemning the violence taking place. Companies naturally don't want to be affiliated with the invading side and are strongly considering social and political costs as much as bottom-line costs, as reported in an article from The Hill.
As of last week, over 300 companies have at least partially cut ties with Russia. The ones that remain have to consider the steep sanctions imposed on Russia from the U.S. and ally countries, as well as safety concerns when transporting goods over borders. These issues can particularly impact the cleaning industry and ability to get goods through the supply chain.
The interesting component for many cleaning companies is that because some products are essential — notably ones in the hygiene or disinfecting realm like toilet paper — some business still needs to be done. Putting this into consideration, many companies are still taking a stand. An example includes Dow Inc., in which the chemical company cut all Russian investments and the only goods being supplied are essential products. In addition, Dow donated $275,000 to Ukrainian refugees and is providing additional aid toward its employees in the afflicted region.
Additionally, the National Association of Manufacturers (NAM) which includes many cleaning brands, announced they are also cutting all relations with suppliers in Russia, while also supporting the sanctions against them.
It will be important for cleaning professionals to keep close tabs on the progression of sanctions and businesses continuing to cut ties or significantly diminish them, as it can impact not only the pricing of products but require businesses to seek out alternate solutions for products if the supply chain is further hampered by the conflict. For more supply chain coverage, check out this CleanLink piece outlining a set of solutions proposed by the National Association of Chemical Distributors (NACD).