The current supply chain crisis we are in was a long time coming due to factors that have happened throughout time like globalization and climate change. But this past year, the Coronavirus disease (COVID-19) pandemic set in motion numerous elements that caused the supply chain crisis we're seeing today.
Right now, we see a labor shortage, shutdowns due to the pandemic, source material weakness and numerous other factors that push our supply chains to the brink. According to a survey from Oracle, about 82% of Americans were negatively impacted by supply chain issues this past year and 80% cut ties with favorite brands due to delays and shortages.
A few months ago, lumber was one of the top industries affected but later in the year lumber returned and metals became scarce. Searching for chicken became top of mind for many restaurants during the heart of the shutdowns but returned. However, poultry runs low again today.
And it is not just items missing. Due to their scarcity, prices are much higher for various items. So, while some consumers may not notice empty shelves or lack of items, the supply chain crisis drives the price of the products up.
So, what is out and what is costly right now because of the crisis?
For one, the semiconductor shortage is expected to carry on into the next year, which means automobiles, electronics and even toys will remain in short supply. The production industry currently struggles to keep up with the backlog in demand.
According to the Adobe Digital Economy Index, jewelry customers saw the most "out of stock" notifications on digital shopping platforms other than tech in October.
A glass and aluminum shortage remains, which affects the beverage and spirits industries as well.
This is a current update based on data from a new platform from Buyers Edge, the Supply Chain Support Center, to help operators better navigate the disruptions.
- Coffee prices are at an all-time with an increase of 99.96% year-over-year due to weather issues for harvesting.
- Beef, pork and chicken prices are up 26%, 19% and 15%, respectively. Chicken shortages are seen heavy in fully cooked wings and par fried tenders throughout the past year.
Other things to keep note of is that jumbo sized Avocados were previously in short supply but larger fruit is becoming more abundant, most fruit comes from Mexico right now due to damage in Southern California. Strawberries in the U.S. are also in short supply with the berries remaining small and without color.
A new COVID-19 variant, Omnicrom, also caused many countries to shut down their borders to overseas travelers which will result in numerous shipping delays.
These numbers and availability will continue to fluctuate throughout the next year and beyond until the supply chain levels out and we fill the gaps that need to be fixed.