When you purchase an item at the store, it may be difficult to tell how many different components went into its manufacturing process. However, many consumer items from computers to cars require multiple parts, and disruptions in the supply chain can make manufacturing grind to a halt. With the Covid-19 pandemic throwing the supply chain into chaos, many industries are facing unprecedented shortages.
Why is the supply chain disrupted?
The short answer? The pandemic. But it’s a little more complicated than that. The pandemic caused many factories to shut down production, and even more shipping companies were forced to ground their fleets. Without the proper supplies to manufacture products and the necessary shipping capabilities, many goods simply can’t be produced or transported in a timely fashion. To make matters worse, there is also a shortage of shipping containers.
How did the disruption come about?
When the pandemic struck, many companies shut down their factories in anticipation of decreased demand for their products. Unfortunately, while several industries did experience drops in demand, other industries boomed. People were spending more time at home, and the demand for everything from furniture to video games to blenders skyrocketed. The problem? Most factories that produce those items were shut down, placing excessive strain on the few facilities that were able to produce.
When will the disruption end?
Now that Americans are regaining some semblance of normalcy, there is a light at the end of the supply chain disruption tunnel. However, it won’t happen overnight. Some experts are predicting the supply chain to be affected past 2022, although others disagree. The disruption will almost definitely affect holiday shopping for 2021 and will most likely continue into the new year.
You can rely on Xcel Delivery in Phoenix, AZ to ship your goods efficiently and safely. For more information on our delivery services, call (602) 368-1300 or send us a message here.
