Supply Chain Challenges Disrupting Domestic Manufacturers
New York, NY, June 14, 2021-In the latest sign of the U.S. economy’s post-pandemic disarray, even companies that have built domestic supply chains are running up against extreme shortages of goods and labor, reports the Wall Street Journal.
“Furniture chain Room & Board Inc. procures more than 90% of its products inside the U.S., with its closest supplier some 4 miles from its Minneapolis headquarters-a contrast to many of its competitors, whose supply chains stretch back to factories in China.
“But amid sky-high consumer demand and shortages of labor and many materials, some Room & Board customers are waiting months for sofas and dressers. About half the items it sells are in stock right now, down from 90% normally. The company emailed a pre-emptive apology to customers earlier this year, noting many purchases would likely face delays.
“Like many companies, Room & Board and its suppliers largely shut down last March as the pandemic arrived in the U.S. The retailer was soon inundated with orders as people stuck at home upgraded living rooms and bought new outdoor dining sets.
“Demand hasn’t let up. Consumer spending on furniture and appliances in the first quarter of this year remains nearly 30% above that time frame in 2019, before the pandemic began, according to federal data.”