After a year of global growth in demand for products and equipment in a pandemic, manufacturers are afraid of a new deficit with raw materials and replenish their reserves. The crisis of the supply system leads to global failures in the global economy and provokes a rabid price jump, writes Bloomberg.
Large of raw materials due to bloated demand for cars, household goods, some products can reach the highest level recently and promote inflation. Manufacturers are purchased materials to progress from new supply problems.
“in the world there is a shortage of copper, iron ore, there is a shortage of coffee, wheat, semiconductors, plastic and cardboard for packaging. Customers buy everything that can, because they react to high demand. They think that the excitement will last until next year “,” said the chairman and chief executive officer of the American manufacturer of engines and cummins generators Tom Linbarger.
The index of world food prices established by the United Nations (UN) in April reached a maximum for seven years. Product prices have demonstrated the longest growth over a decade – 11 months in a row.
The crisis on the manufacturers market is provoked also the consequences of the accident at the Suez Channel, drought, the COVID-19 mass flash in India, which blocked access to its ports.
California Energy Manufacturer Monster Beverage complained to the shortage of aluminum cans.
London packaging company DS Smith PLC said that the demand for the packaging of goods in a pandemic increased seven times. The cost of delivery of the recycled fiber, which it uses for the production of containers, has doubled to 200 euros (243 dollars) per ton.
“These are considerable costs for the company, since we buy from 4 to 5 million tons of fiber per year,” the company’s chief executive officer Miles Roberts explained.
At the end of April, Tim Cook announced the possible Apple deficit in 2021 due to the global shortage of semiconductors. Manufacturer of electronic gadgets MOMAX TECHNOLOGY postponed the release of a new product due to problems with chip supplies. And according to the head of International Business Machines (IBM), the prices for electronics and cars will rapidly grow at least until 2023.