The pandemic has upended global supply chains and disrupted the delicate balance of supply and demand in many industries.
The coronavirus pandemic has snarled global supply chains and scrambled supply and demand forecasting for manufacturers across all sorts of industries, from electronics to lumber to poultry. Factory closures, shipping delays, and logistics challenges, coupled with major changes in consumption patterns thanks to lockdowns, capacity and travel restrictions and fear, have created a series of shortages and gluts in the global economy. In many cases mismatches of supply and demand have driven up prices, sparking inflation fears. Here’s what we’re short on. The essential computer chips used in a broad swath of electronic devices from cars to smartphones have been scarce for months thanks to supply chain issues caused by the pandemic. First, factory shutdowns in Asia delayed production of the chips. Then, a huge pandemic-induced surge in consumer demand for electronics was more than the chipmakers could handle. The effects of the shortage are bleeding into other industries: some North American automakers have been forced to slow or halt production because they don’t have the chips they need. And the industry isn’t out of the woods yet: “The semiconductor shortage and the impact to production will get worse before it gets better,” Ford CEO Jim Farley said during an earnings call last month. Consumer demand for chicken during the pandemic and supply chain pressures have sent poultry prices soaring this spring. Suppliers are struggling to hire enough workers, and the “ chicken sandwich wars ” between fast food restaurants have also sent demand soaring. Now, national restaurant chains like KFC, Bojangles and Buffalo Wild Wings, as well as independent bars and restaurants are all struggling to meet demand for wings and other chicken products. The lumber supply chain is showing cracks under the weight of production slowdowns in the early days of the pandemic, a homebuilding boom in the United States and a pine beetle infestation in Canadian forests. Prices have tripled since early 2020 and are still rising. New homes cost nearly $36,000 more on average as a result, according to an analysis by the National Association of Home Builders. Demand for new homes is booming, but the supply of skilled builders is lagging behind, the Wall Street Journal reported last month. There are far fewer builders operating now in the United States than there were before the housing bubble burst in 2008, and according to the Journal, the shortage means that soaring home prices aren’t likely to fall any time soon. As in-restaurant diners turned to take-out during lockdowns last year, individual ketchup packets became a hot commodity. The Wall Street Journal reported last month that restaurants are scrambling to stock up amid a national shortage of single-serving versions of the condiment. But it’s not all bad news: Kraft Heinz U.
