Food manufacturing prices will continue to increase, as shipping limitations impact the supply chain well into Q3, according to a Thomas report.
"As industry continues to adapt to supply chain disruptions and the aftermath of the pandemic, we are seeing strong demand across a wide range of categories, reflecting a continued recovery," says Thomas president and CEO Tony Uphoff. "Our Sourcing Activity Snapshot shows that companies are embracing advanced manufacturing technology to both meet increased demand and overcome supply chain challenges. The report shows a vibrant manufacturing market overall and provides insights into specific areas of sourcing that will continue to impact industry and the broader economy as we move into Q3."
- Due to the nationwide shortage of truck drivers and exponential increase in e-commerce, industrial companies will face challenges with shipping logistics that may cause substantial delays. As a result, Thomas anticipates a 5-8% increase in sourcing for shipping services (alongside predicted growth in trucking services) during Q3.
- Still reeling from the impacts of COVID-19 and scrambling to address continued, long-term disruptions, the food supply chain has had a tumultuous first half of 2021. Thomas expects related categories, specifically food contract manufacturing, to see sustained sourcing growth over Q3 of 8-11%.