Supply chain fractures from COVID-19, the extensive increase in the cost of containers, and immense global shipping container shortages have begun a ripple effect that consumers will feel. The higher demand for unavailable containers has caused the prices of food items to skyrocket in supermarkets, and other retail goods are experiencing the same.
Large companies like Hyundai have increased their order and delivery time schedules to account for reducing available shipping vessels and because they are part of another crisis that encircles chipset manufacture. A global shortage of chipsets is a massive problem because the world relies heavily on chips to power mobile phones, PlayStations, toasters, ovens, computers, motorcycles, cars, and so much more.
The demand for semiconductors has dramatically expanded due to the strong demand for electronic goods from consumers locked away at home looking for entertainment gadgets and work from home products. As demand increases for food, electronics and retail goods, the ever-growing shipping cost continues to push up the price of all these products. By Christmas, it is predicted that the global economy could see the cost of products increase by at least 10%. How might these increased costs disrupt business models, savings, or sustain margins in your current products? There is much to consider, measure and take into account. However, with Strategy Hubb on your side, there is still time to take stock, plan and devise new strategies to overcome the impending market shocks.