According to CBS, there are currently half a million shipping containers filled with goods from various Asian countries waiting to be offloaded. Compound this with a shortage of truck drivers, backed up railroad terminals, and warehouse worker shortages, and you have the perfect storm for a supply chain nightmare. But, there has to be a solution, right? Organizations all across the country are trying to figure out how to break the supply chain bottleneck.
Fortunately, there may be something your company can do.
Covid-19 created a massive backlog for products all around the world. Productivity came to a halt seemingly overnight when workers were sent home to quarantine and the world shut down for several months.
But that’s not all.
Additionally, thanks to help from the atypical Texas winter storms we experienced in 2020, we have a global microchip shortage that’s slowed car and electronic devices production. Productivity issues, though, aren’t just domestic. China is experiencing an energy crisis too. Other countries known for their manufacturing output are experiencing continued labor shortages.
Currently, things seem dire, but this may not be for long. According to JPMorgan Chase CEO Jamie Dimon, our situation may improve soon. “This [supply chain bottleneck] will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have.”
Why is Dimon so optimistic? Consumer spending was 20 percent higher in 2021 than in 2019. Last year, Americans largely stayed indoors. Therefore, they spent less money. Add to this the fact Americans received stimulus money, and people have disposable income to spend. Now, restrictions are lifting, and more and more people are returning to the workforce.
Dimon believes consumers can continue to spend like this for some time. This also means companies will soon be the benefactors too. Organizations will have more money to spend as products continue to drive revenue. So, they can increase productivity to help reduce supply chain concerns.
What Your Company Can Do
Businesses are worrying about meeting the demands for the upcoming holiday season. However, there is a way for them to alleviate these concerns. Hiring the right talent to ease worker shortage is one critical way how to break the supply chain bottleneck. Again, with increased consumer spending means more money for companies to invest in their employees. A larger and stronger workforce for your organization can quell these major supply chain concerns.
To avoid being caught in a logistics nightmare, you need to hire the right talent. If you are looking for top talent in Engineering & Manufacturing, then Applied Resource Group will find the high-performing professionals your organization needs. Apply the right resources today to solve your current supply chain bottleneck issues!