Consumer Demands Increase as Supply & Workforce Decrease
Businesses around the United States are experiencing an increase in consumer demand while trying to solve for a decrease in laborers and disruption in supply chains........
Labor scarcity is plaguing every industry and state, leading to an all-time record 8.3 million job openings in April . The shortage is hitting the services sector especially hard. The Associated Press reports that the state’s restaurant industry remains about 450,000 jobs below its pre-pandemic level. And there’s not just a shortage of cooks, bartenders and food servers—many sectors are struggling to fill jobs too, including construction, home health care, retail and transportation/deliveries.
Industries are also experiencing shortages in key raw materials. This scarcity of raw materials is reverberating across supply chains as these commodities are often not only end products in and of themselves, but are part of other products as well. Take for example Semiconductor chips which can be sold individually to consumers but are also an essential component for cars, appliances, TVs, LED bulbs, cameras and more. Acute shortages in lumber, steel and cement are pushing the price of remodeling projects and home construction through the roof further straining construction budgets and resulting in increased home sale prices.
There is a light at the end of the tunnel.......
Economists and Industry Experts anticipate supply chains will "catchup" and resume normal operations within the next 6-months. In the month of June alone, the United States added 850,000 workers back into the workforce resulting in the highest gain in 10 months. We hope these predictions and trends will continue to move in a positive direction.
Morgan Hill Chamber of Commerce