Supply Chain Shortage Woes
Supply chain shortages have affected numerous industries and may be affecting our members. Everyday items like paper or baby formula are more scarce, and both companies and consumers are feeling the pinch.
Some of the industries most significantly hit by global supply chain shortages include semiconductors, automobiles, industrials, retail, and restaurants.
So what exactly is causing the supply chain shortage? Here are a couple of factors:
Supply Chain Disruption
A lot of items are sourced globablly. An example of this is paper, which is typically imported from Europe and Asia. Due to the pandamic and other factors, paper is not coming in time due to container shortages, labor, and prices. Paper demand continues to be high, outpacing supply.
Rising Costs and Demand
In 2022 we have seen a dramatic increase in the cost to produce items. Pulp, chemicals, and other factors needed to produce items have increased. But the demand for these items remains the same or greater. There are also increases in costs based on driving shortages and capacity.
Transportation
Fuel and energy prices are up, plus there are disruptions in the global supply chain impacting international and domestic shipping. There is a shortage of trucks and drivers to move paper and other goods in North America.
The War in Ukraine
The Russian invasion of Ukraine has added to the woes of global supply chains. This has directly affected industries from cars, retail, and semiconductors, which has caused additional strain to the supply chain.
When will the Shortages End?
Unfortunately, there is no way of knowing. Shortages and delays could effect the upcoming holiday season and beyond. It may be difficult to find key goods, but companies have increased their capacity and are starting to mitigate unknown factors for the longterm.