Delays within the industry
Where are my materials?
Even though March 2021 feels like a distant memory as we move into the summer months, it’s impossible to ignore the impacts of the Ever Given lodging firmly in the Suez Canal for more than six days. Almost every industry, especially small businesses, feel the effects of the Suez Canal incident, creating delays and bottlenecks worldwide. Over 350 vessels were stalled, creating major delays, and most large companies expect this bottleneck to last at least through the summer, if not the end of the year.
It’s not just the initial incident in the Suez Canal that impacts the global supply chain either. Port congestion in the United States, the COVID-19 pandemic, geo-political tensions and a worldwide microchip shortage all impact the ability to move goods across the world.
Due to these temporary holdups in the global supply chain, port congestion in California is exceptionally high, so ocean shipping rates and air freight have increased dramatically.
According to a survey of roughly 800 companies by Vistage Worldwide Inc., forty-four percent of small businesses reported temporary shortages or other supply-chain problems in March, and they continue to feel these effects. A U.S. Census Bureau survey of small businesses, completed in early April, found supply-chain disruptions in wholesale trade, manufacturing and construction.
Cabinets, steel, countertop material, lumber, and so much more are experiencing unprecedented delays. This year’s real estate boom hasn’t helped either. Huge increases in orders (thankfully with minimal effect on lead time) affects the shipping of materials for all housing-based industries. Combine these two factors, and you’re looking at the perfect storm.
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