Supply Chain Disruptions
As you know, costs are up everywhere while the supply chain is under duress. This affects everything from gasoline to dairy products. This also affects Pier Gear’s ability to source the materials for our boat dock accessories. We are looking for alternatives for our materials but will not sacrifice quality for the purpose of simply moving product.
We are working to build our inventory and will likely face shortages with some boat dock accessories being sold out before peak boating season arrives. We share this only to prepare you for this potential and hope you won’t be disappointed should our supplies run out before you’re ready to make your purchase decisions.
A recent article published by Morgan Stanley helps explain the complexity of modern supply chains. In this excerpt, it also sheds light on how we are all affected by these disruptions.
“Global supply chains have been pushed to the brink over the last two years, revealing the shortcomings of a complicated system that impacts everything from computer chips to toilet paper. These disruptions don't just affect daily life—they reverberate across the global economy.”
Morgan Stanley goes on to discuss some of the biggest takeaways that consumers and investors should understand.
“Several factors have hampered supply chains over the last two years, including COVID-related production issues, broad-based labor supply challenges, and the “bullwhip effects" of pull-forward ordering and precautionary inventory buildup. Yet, the single largest culprit has been the unexpected and unprecedented surge in demand for goods.”
“Meanwhile, the trucking industry is facing persistent labor shortages, all of which add up to higher logistics burdens throughout 2022. Further, a significant decline in airfreight capacity—about 65% into the US—is contributing to higher costs.”
One lesson here might be to expect more shortages in the months to come and to prepare in advance as best we can.
You can read the entire article at MorganStanley.com and search for “supply chain disruption”.