Supply Chain Issues Far From Over
The supply chain issues of the last year or two have eased, but they are far from over. The Federal Reserve‘s recent interest rate hike and Chairman Jerome Powell‘s comments suggest that goods-related inflation hasn’t come down as much as expected. Minnesota-based companies are still feeling the effects of the ongoing chip shortage, higher costs for raw materials, and labor shortages.
The global supply chain pressure index has been steadily declining since December 2021, and supply managers in nine central states including Minnesota said in an October survey that the speed of deliveries is back to pre-pandemic levels. However, one-third of them also said their biggest challenge for the fourth quarter was supply-chain disruptions.
The drought has led to lower levels on the Mississippi River making barge traffic difficult, and a possible railroad workers’ strike looms in December. Labor shortages are pushing wages up, which impacts the prices companies charge for products and services. Demand has also slowed down for many manufacturers as the Fed has been hiking interest rates.
The supply chain issues of the last year or two have eased, but they are far from over. Companies are still feeling the effects of the ongoing chip shortage, higher costs for raw materials, labor shortages, and other disruptions. The Federal Reserve’s recent interest rate hike and Chairman Jerome Powell’s comments suggest that goods-related inflation hasn’t come down as much as expected. It is clear that the supply chain crisis is far from over and that companies must remain vigilant in order to stay ahead of the curve.
This article is spot on! I manage a supply chain company and have had to navigate through many of these issues. It is important that companies stay informed and prepared in order to mitigate supply chain disruptions.
This is an insightful article. I have experienced the same labor shortages in my business and it has been a challenge to keep up with the demand. It would be interesting to see what strategies the Fed is implementing to address the supply chain issues.
Very well written article. I have seen first hand the effects of supply chain disruptions. It is important that companies be proactive in order to avoid any potential problems. Thx for sharing.