Have you noticed an increase in out of stock items at your local store or online? In early April, shortages were up to around 30% of grocery or retail items being out of stock. It’s definitely inconvenient but it’s important to understand what’s behind it.
Materials, labor, and transportation all contribute to the price and availability of products. With more money in circulation, consumer demand has also risen contributing to the issue. A change with any one of these factors increases the price since there is more competition to get the product.
The supply chain was already impacted by COVID-19 and further affected by the Russia-Ukraine war. Some would describe the current supply chain as fragile since any small disruption can have larger consequences.
Unfortunately, supply chain issues don’t just impact one type of product or one part of the chain. For example, with new housing construction a multitude of issues can arise- labor shortages with producing timber, increased gas prices to transport the supplies, backordered appliances- all leaving the buyer to make up the difference.
There isn’t a quick fix for this but we can shift our focus to budgeting with current prices in mind, planning ahead for any needed supplies, and considering investing in assets that can help grow your wealth.
