As reported by NBC News, a global helium shortage is causing Party City, the New Jersey-based party supply company, to shutter around 45 stores in locations throughout the nation, citing a short supply of helium as one factor hitting its profit margin.
It’s not just kids’ birthday parties at risk from the helium shortage — the lighter-than-air, nonrenewable natural resource has many more crucial applications, ranging from smartphones to MRIs.
Qatar, which produces around 75 percent of the world’s helium supply, was forced to halt all exports of the gas in 2017 after Saudi Arabia imposed a blockade, tying a knot in the supply chain.
While Party City is nearing an agreement for a new long term source of helium, mid-market business owners in any number of industry segments are not immune from similar supply chain woes, resulting in significant impacts to daily business routines, and negative flow-down to the bottom line.
Utilizing captive insurance as a mechanism to address company operational risks not traditionally covered in P&C policies may be a savvy business move in today’s uncertain markets. Not sure if a captive insurance solution is right for you or a business owner client? Give an Oxford Risk Management Consultant a call at 410-472-6490 and we’ll walk you through a discussion on the possibilities.