Price Pressures Boil On ‘Unprecedented’ Supply Chain Trouble

Price Pressures Boil On ‘Unprecedented’ Supply Chain Trouble

Is the US manufacturing rebound hitting a wall? Probably not, but it's certainly worth noting that durable goods orders dropped for the first time since the initial pandemic lockdowns. Orders fell 1.1% last month, against expectations for a small gain. Factories have been a bastion of stability over the course of the pandemic, an ironic twist for the world's largest economy, which long ago transitioned to a model based primarily on a self-referential dynamic wherein low-paid services sector
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6 thoughts on “Price Pressures Boil On ‘Unprecedented’ Supply Chain Trouble

  1. Supply chain disruptions seems like the new buzzword/phrase. It would be interesting to know how much of the ‘disruption’ is due to shipping issues like container shortages or canal bottlenecks and how much is due to demand outstripping supply like semi conductor shortages stopping factories…

    1. Or, worse. On some alternative outlets we should expect to read that the Illuminati are behind these “disruptions.” In fact, this is rational and makes perfect sense as this same group has, depending on the outlet one reads, been behind so many other events, whether we know and accept it or not.

  2. Remember in 2019 when Warren and Kraft totally screwed up revenue recognition and got caught? The pandemic has probably influenced accounting irregularities and fraud and all that risk that used to matter … now risk, including pandemics, 911-type stuff, nuke accidents and all major events are now no longer linked to risk.

    “According to Monday’s filing with the SEC, the miscalculations were due in part to recognizing the benefits of costs and rebates in the wrong time period, which the company said it has since corrected.

    “During the course of a thorough internal investigation, some discrepancies were uncovered which affected the way earnings were calculated between periods,” a Kraft Heinz spokesperson said in a statement to CNBC. “While we don’t believe that the misstatements are quantitatively material to any prior period, due to the qualitative nature of the matters identified, the Company determined that it is appropriate to correct the errors in previously issued financial statements.””

  3. I mean a lot of companies are not interested in increasing capacity to meet demands of temporary consumer financial conditions. If you sold out your inventory you don’t necessarily take any action in response. Additionally shipping has had so many issues related to Covid from crews stranded at sea for months and months past their scheduled tours to storms capsizing them to massive backlogs unloading at port. I’ve had items in port since November that still haven’t been unloaded. Add in actual production challenges related to dealing with Covid for over a year and well… there’s definitely wall to hit.

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