Global supply chain delays, shortages could drive up prices and limit options on shelves – Winnipeg
Global supply chains continue to face disruptions 18 months after the start of the pandemic, with some retail markets experiencing product delays and shortages as well as rising prices, as consumers adjust their shopping habits. spending and the waves of COVID-19 rocking different parts of the world at different times.
An expert says the pandemic is clogging supply chains much like a car crash blocks a highway.
“It resolves on its own, but in the short term there are quite a few challenges for consumers and retailers,” Retail Council of Canada’s Michael LeBlanc told CJOB Tuesday.
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Supply chain issues affect a range of products as parts are often purchased overseas, he said, adding that retailers will face the ongoing question of trying to understand the difference between trends. of temporary and permanent consumption in the midst of the pandemic.
Integrated players along the chain, such as Manitoba’s trucking industry, are feeling the pressure, effects that could trickle down to consumers, the executive director of the Manitoba Trucking Association told CJOB on Tuesday.
“Within our industry, due to the semiconductor shortage and other types of manufacturing component shortages, we have heard that the purchasing times for trucks and especially trailers are very long and that costs are also rising, ”Shaw said.
“A member told us last week that he had placed an order for 10 new trucks. The delivery date for these trucks will be 2023. “
Order delays of this magnitude are starting to present challenges and disrupt budgeting, funding and procurement schedules, Shaw said.
“All of this impacts your prices for your customers in the market,” he said. “We’re fine now, but it’s an interesting time. “
Delays aren’t the only battles on their plate, he said, as the industry grapples with a labor shortage and rising prices for everyday items like tires. , which have cost 8% more so far this year.
“For an industry that uses a lot of tires, this is no small number. So even the equipment that we can get our hands on, in some cases the prices for those items go up, ”Shaw said.
“I think it will have an impact – and I think we’re already seeing the impacts – on the supply chain through, you know, higher commodity costs and higher grocery costs.”
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Sylvain Charlebois, of Dalhousie University’s Agri-Food Analysis Lab, echoed those sentiments, telling CJOB that labor and transportation constraints could drive up food prices and make them less expensive. affordable.
“Before (the) pandemic, the market was quite predictable. Not anymore, on a variety of issues, just because we’ve actually changed our behavior, ”said Charlebois.
“I suspect most Canadians may underestimate how difficult things have gotten in supply chains.”
Meanwhile, LeBlanc says retailers are trying to adjust with consumers as economies fluctuate and vaccination rates rise.
“(Retailers) are looking carefully: ‘should we make decisions differently around the supply chain? »Should we have more suppliers? Should we group our suppliers? … Or are you diversifying? “
“This is probably the case for many items that your choice will be more limited than before, but you will still be able to buy products…. Maybe you don’t get the brand of tire you were looking for, but you can still get the tire.
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