Different states, including Kansas and Massachusetts, are experiencing this crisis, so authorities have invited parents to be careful when buying essential products, such as infant formula. Also, American media is informing about out-of-stock groceries that are persistent in Connecticut, Delaware, Montana, Rhode Island, Texas, Washington, and New Jersey.
This blog post will tell you everything about what is causing product shortages in the US and their economic impact on small business owners.
All You Need to Know About the Product Shortages in the US
According to Megan Cerullo, customers see empty shelves where there should be essential consumer products like baby formula and sunflower oil.
As a result, some of these shoppers take advantage of the online marketplace to purchase these products. Currently, the lack of essential products is rising to 31% in the US, alarming authorities and experts in the economy.
What are the underlying causes of this product shortage crisis? Cerullo explains that:
“Generally, the availability of price goods depends on three main components: materials, human labor, and logistics, like shipping and transportation. If any of these links is weak, or breaks down as they have during the pandemic, it can disrupt the entire supply chain.”
In addition, ongoing situations, such as the COVID-19 and Russia’s war on Ukraine, have impacted the availability of crops, disrupting connections between suppliers, manufacturers, shippers, retailers, and consumers. Inflation can raise prices and salaries, interrupting the supply chain in the US.
Eloise Barry analyzes the current baby formula shortage in the US and asserts that the coronavirus pandemic increased demand for many products and services following the easing of lockdown restrictions.
Nonetheless, this shortage has been deepening due to closures of factories because of contaminant substances found in baby formula. Consequently, American renowned baby food companies, such as Serenity Kids, have been expressing their concern and committing to producing infant formula free from contaminants.
By watching this video, you’ll have the chance to deepen your knowledge of this significant event for the US economy.
How Can Your Prepare Against Increasing Inflation, Prices, and Payrolls?
If you want to be prepared for this situation, it would be helpful for you to understand how the American economy is affecting the financial capabilities of small businesses. This year, inflation and the current roaring economy have eroded businesses’ capabilities, incentivizing product shortage.
We recommend you these actions to be prepared against increasing inflation, prices, and payrolls in 2022:
Evaluate your market vulnerability: If you want to face the most critical challenges linked to inflation payroll increases, we suggest assessing the labor-market vulnerability.
Focus on efficiency and productivity: You may want to center your business’ operations on efficiency and productivity. For instance, HR specialists in your company can shape parameters to schedule time for deep work with remote employees. Also, they can adopt measures to monitor employees’ performance, avoiding distractions or burnout. For doing this, you can get technological resources for project management.
Rely on a nearshoring strategy: You can reduce costs and access the most qualified talent by developing nearshoring strategies aligned with your HR management approach.
Hire remote: Also, transitioning toward an outsourced remote workforce will allow you to reduce expenses derived from locations and payrolls if your plan your staffing needs well.