Delays and Shortages To Constrain Firms All Year

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Shipping delays and supply shortages to constrain firms all year says an article on Bloomberg.

Firms to be constrained for a year

Companies worldwide expect supply-chain constraints resulting from logistics backlogs and the global semiconductor shortage to continue for much of this year.

Tight supply environment

In earnings calls this week, firms including Tesla, Sony, and shoe company Crocs expressed concerns about the ability to meet demand given ongoing supply-chain bottlenecks. Some said they don’t expect the tight supply environment to be resolved until the end of the year.

Global crisis

While the pandemic continues to boost spending on products like gadgets, cars, and comfortable apparel, meeting that demand is a different story. The comments from company leaders underscore the long-term impacts of the Suez Canal blockage, port congestion in the U.S., and the worldwide chip shortage on global trade.

“Our current expectation is we will face a tight supply environment for at least the remainder of 2021,” said Kurt Sievers, chief executive of NXP Semi, a leader in automotive chip production. At the same time, the company has “seen a significant increase in demand for our products.”

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Source: Bloomberg

 

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