The COVID-19 pandemic has affected the world in many different ways, from bringing about a digital transformation and changing the way we do business, to creating a labor shortage fueled by fear of returning to the workforce. Even now, society is still dealing with repercussions of the worldwide lockdown, and perhaps the largest impact of all are the issues created within the global supply chain.
Now that the world is beginning to recover from the COVID-19 pandemic, demands for goods are running high but supply chain disruptions are causing a global shortage of goods. Anything from household appliances and electronics to automobiles are becoming increasingly difficult to acquire, and this has left many wondering how it will impact the holidays. The main cause for these shortages is the result of the pandemic mitigation strategies that reduced production and the economy’s effort to return to its former operational capacity. Demand for goods and services are exceeding supply, creating order delays and supply shortages around the world.
The recent labor shortage is another contributing factor. Warehouse workers and truck drivers are a major key to a smooth supply chain process, and many are quitting their jobs in pursuit of higher paying careers. Large companies such as Walmart, Target and Amazon are increasing benefits to attract workers, and retail companies are trying to keep up with competition by increasing wages. Retirements are also contributing to the shortage, leaving new truck drivers needing to be trained after closures due to the pandemic.
Many people are concerned about these shortages occurring so close to the holidays, but supply chain experts suggest that consumers practice patience and give the economy time to level out, or they could possibly end up paying more for goods and services.