BOSS Audio is forecasting the shortages will continue through next year. Nakamichi says it will know more in the next 60 days.
Epsilon sees trouble in the fourth quarter, especially in shipping delays, as companies in many industries try to ship goods in time for the holidays.
“The fourth quarter is the crunch for everybody. There’s going to be a shortage in the fourth quarter, I don’t care what anybody says. It may not necessarily be because stuff isn’t getting manufactured; it’s getting on a boat,” said Ronnie Brashear VP of Sales at Epsilon.
“We have a $7 million standing order with [a mass merchant] for a promo kit for Christmas. To ensure we would get on a boat, first we went to the Israelis. They have their own port at the Long Beach dock, so they don’t have that two week wait in the bay and then with unloading you are up to 4 weeks. But the Israelis want an extra $25,000 a container, so with 40 containers, you do the math. ”
Brashear continued, “Normally we would book containers two weeks before we completed a production run and then go the dock. Now, we booked on the first of June, so 4 months in advance at $11 or $12,000 a container [it used to be $3,000 a container]. And that’s 40 containers!”
Consumer electronics analyst Robert Heiblim of bluesalve says he expects shortages for smaller companies will continue to the second half of 2022.
“Some commodities are coming down in price, but not to pre-pandemic levels yet. Others will stay high well into 2022….I suspect things will ease in the second half of 2022 but that is one year away,” said Heiblim.
Bluesalve’s advice? “The truth is you need to work it every day…You need to prioritize your items to get what is most critical and contributing to the business. There is no easy answer, but daily engagement will help,” Heiblim said.
Photo: Cartronics, Biscayne, FL
source: https://www.ceoutlook.com/2021/07/07/latest-update-on-shortages/
