It is not uncommon to see chicken wings at your favorite restaurant being discontinued or priced at market rate these days. Walking into a store, you are likely seeing shelves that are depleted or even empty. Some stores have even gone back to limiting items purchased. You have heard of flight cancellations and delays, car rental fiascos where people have shown up to rental places with a reservation, but to find there is no car available. Speaking of cars, car dealerships are paying thousands of dollars over Kelley Blue Book Value to purchase used cars and new cars are hard to come by.
All due to supply chain disruptions.
What does this mean for the upcoming Holiday Season?
Sean Burke, Chief Commercial Officer at Echo Global Logistics, states, “I believe we’re looking at an extremely tight market for the foreseeable future, through the end of this year would be my expectation. With hurricane-relief loads, along with the normal seasonality of produce and the backlog of vessels especially on the West Coast, we’re looking at pretty tight conditions for the remainder of the year.”
“This year, Christmas will be very different,” said Steven Melnyk, a Professor of Supply Chain and Operations Management at Michigan State University. “We won’t see as many blowout sales leading up to the holidays, and prices are going to go up.”
Melnyk also thinks consumers will approach shopping differently this year. They will be more focused on availability. You will see more purchases at brick-and-mortar stores as well as more Made In America purchases.
Gina Raimondo, the Secretary of Commerce, hosted an industry summit on the chip shortage, with executives from companies including Ford and General Motors, as well as Apple and Samsung, which are also competing for semiconductors. Afterward, her office said that one of its goals is to build supply-chain “trust.” Another is to explore how the United States can become less dependent on overseas suppliers.
The United States of America began offloading much of its manufacturing to Asia, Latin America, and predominately China because container shipping has made moving goods between hemispheres so inexpensive. Corporations saw the chance to lower prices and increase the bottom line. These actions have made America vulnerable.
So, as you begin to plan your Holiday season, understand that buying products that are Made In America will be more available to you as well as will be shipped at a faster speed. start noticing where the items you purchase are made. Understand that making the choice to buy Made In America increases the American economy, it increases the demand for manufacturing to reshore, creates more jobs, and ultimately decreases our dependency on any foreign country.