Christmas Production Shortage
Have you heard the news? There is a shortage of Christmas supplies this year. This means that there is a shortage of Christmas gifts and you can expect your Christmas gifts to be delayed.
There are multiple reasons behind this shortage. One reason stems from the blockage of multiple ports. The other stems from a worker shortage.
Ever since the COVID-19 pandemic started in March of 2020, there has been a shortage of workers and supplies. During these past few months, employers have been increasing their minimum wages in hopes of bringing more people into the workforce. Employers are also giving lots of employer benefits like medical and dental insurance, a $5,000 signing bonus, and so much more.
This tactic has been working but not well enough. There are still a lot of people who are looking to stay home and collect unemployment even though benefits are running low. Since there is a shortage of workers, there are a lot of shipping delays, port delays, and shortages of supplies.
With a lot of people being vaccinated, people are starting to spend time with extended family again as the holidays are rolling around the corner. As the holiday gatherings come back, gifts are in higher demand. Last year, a lot of people did not get their nieces, nephews, cousins, aunts, and uncles Christmas physical gifts. There was a lot of money and gift cards given out because shopping and gathering were limited.
As the holiday giving ramps up as we inch closer to Christmas 2021, it is important to keep in mind the shipping delay could become the Grinch on Christmas.
Many big retailers are trying to prioritize shipments but these supplies are seeing major delays. If people do go ahead and make some of these purchases, the delays can span all the way to February. Back before COVID, you can order almost anything and get it within a week or two. Now, most items will take anywhere between two weeks to four months to come in depending on the product.
When it comes to shipping, transporting good by containers have doubled since May 2021. This is because most of our supplies are made in other countries and are being shipped to the US. A lot of companies cannot afford factories anymore in the US so they invest in factories overseas and rely on shipping in order to create enough revenue.
Now there is a big downside to the shipping aspect of producing goods as the cost to ship these supplies went up, going up from $5,500 to $20,000. This is not a surprise due to the fact that all prices are going up within the economy. Factories that deal with these supply issues started to have labor shortages during March and April of 2020. Due to the labor shortages, imports fell by 5.8% and exports rose by 1.3%. These numbers only ended up falling even more.
The pandemic also caused a lot of ports to clog up which resulted in port closures. These delays can cause a day or two delays or even multiple-week delays.
In all, expect delays on your Christmas gifts. Do not give up on buying those gifts for everyone, but factor in the delay when purchasing goods online. Purchasing items at stores where the products are available is key. However, take this delay with some added perspective. Yes, gifts and giving are a big part of the holidays, but so is spending time with our loved ones.
That’s what really matters in the long run, getting back to family gatherings is the best gift of all.
