Holiday season could be affected by supply chain issues
ALBUQUERQUE, NM (KRQE) – This year’s holiday shopping may mean a shorter gift list, as stores across the country bear the brunt of international supply chain issues. The companies say a lack of drivers to transport goods from shipping ports along the coast could mean empty aisles.
Some local stores are already seeing delays in the supply chain, but on the other hand, a company in the region says it sees the opposite. While some New Mexico stores may slow down due to lack of inventory, things are busier than usual at Sport Systems as they try to catch up on last year’s orders as they go. arrive.
“A year ago we took a massive $ 2 million bet. We said, you know, we think the supply issue in COVID might continue and let’s take a chance and order big, ”said Duane Kinsley, owner of Sport Systems. “Orders by the thousands, 2,500 bicycles, thousands of tires and tubes, skis, snowboards, shoes. We have ordered in huge quantities and we are getting them now. It’s not that there isn’t a supply problem, there is. It’s just that we ordered it a year ago and just received it today.
The local store says it saw a demand for outdoor activities like biking and skiing and decided to order whatever was available, whenever it could. All of this has finally started to happen in recent weeks. For now, that means turning their warehouse into a game of Tetris as they work to accommodate incoming goods.
“Everyone tried to unpack everything, get it ready for sale and put it on the upstairs sales area,” said Jose Webber of Sport Systems. “We had to move things all over the warehouse floor, putting them in places where they weren’t before. “
However, other stores weren’t so lucky with the supply boom. Ports along the west coast continue to be overloaded with ships carrying goods from overseas, as companies run out of drivers to transport goods across the country. This means seeing fewer products on store shelves, like fruit and fish, televisions and toys.
The UNM’s economics department says the pandemic’s early closures play a significant role in this delayed outcome. Speaker Dave Dixon calls it the “Perfect Storm”.
“A lot of businesses have shrunk. Many companies have stopped producing or transporting things because of labor shortages or because they anticipated shortages, ”Dixon said. “It’s part of what impacted the chip industry, for example, that affected cars so much. “
Dixon says many of these workers have found alternative work and may not want to return to their old jobs. On the other side of the “storm”, merchandise exporters from other countries face the same problems.
“Another part of the storm has been energy and labor shortages in China, where 85% of the consumer goods that people can’t find on their shelves come from,” Dixon said. . “It doesn’t just affect consumer goods. It affects everything and it will keep this slowing down. “
Back at Sport Systems, Kinsley says the winter sports industry is already exhausted for the year. While things are on hold, the fact that things are already selling could mean they may soon have to pre-order next season’s supply.
“If we were to order something right now, a ski or a snowboard, we wouldn’t see it for over a year. People have to choose from what’s in a store because you won’t be able to specially order it, ”Kinsley said. “The supply problem is particularly serious now and could worsen in the coming months before it improves, but we believe that will become somewhat normal.”
Dixon says it’s not just a shortage of consumer goods. There are also issues getting replacement items for trucks, freighters and more that are needed to ship the products, further delaying the process. He says those delays likely won’t be resolved until next year, after the holiday shopping season.