From Apple to Domino's Pizza, U.S. Companies Scramble to Meet Surge in Demand

[mahatmakanejeeves]

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

Source: The Wall Street Journal.

BUSINESS

From Apple to Domino’s Pizza, U.S. Companies Scramble to Meet Surge in Demand

Supply-chain snarls and labor shortages crimp some businesses looking to ride rebound in U.S. economy; ‘caught flat-footed’

By Thomas Gryta and Theo Francis
Updated May 2, 2021 9:12 am ET

Consumers are splurging on cars and furniture—and facing extended waits for delivery. Restaurants and gyms are reopening—and struggling to find workers. Factories and home builders are trying to ramp up—but are short on semiconductors or raw materials.

Federal Reserve officials and most economists largely play down supply and cost problems as transitory, saying they aren’t widespread enough to threaten corporate profits or the broader U.S. economy for long, especially amid strong sales.

But problems are acute for some individual businesses and even entire industries. Executives from gadget giant Apple Inc. to mattress seller Tempur Sealy International Inc. said last week that supply-chain issues could curb their growth in the short term. Others have responded by raising prices on everything from diapers to air conditioners.

The Covid-19 outbreak paralyzed both supply and demand last spring. This spring, vaccinations and government stimulus have created imbalances in many sectors.

“The very sudden stop to the economy, and then the very quick restart, has created a lot of havoc—a lot of businesses have gotten caught flat-footed,” said David Lefkowitz, head of Americas equities for UBS Global Wealth Management.

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Read more: https://www.wsj.com/articles/from-apple-to-dominos-pizza-u-s-companies-scramble-to-meet-surge-in-demand-11619958601

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Hat tip, Joe.My.God.

WSJ: Businesses Scramble As Economy Comes To Life
May 2, 2021

https://www.joemygod.com/2021/05/wsj-businesses-scramble-as-economy-comes-to-life/

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https://twitter.com/tgryta
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https://twitter.com/theofrancis
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[WA-03 Democrat]

1. Last year

2020 - where can I buy toilet paper or cleaning products?
2021 - sky’s the limit! Free vaccines! Vacation? Recreation?


Elections have reverberations and revelations.

[Initech]

15. I bought a new car last year because the demand was so low.

And I got a really killer deal. Glad I bought when the time was right!

[OldBaldy1701E]

2. Yeah

Well, we had our chance to make things less greed-driven, and it seems no one wanted that. So, I can't summon any sympathy.

[jimfields33]

10. I just bought a new iPhone and iPad on April 23rd

Thank goodness I did. Sounds like soon it will be difficult.

[Aussie105]

3. "Consumers are splurging on cars and furniture"

Same thing noted here in Australia.

Used car prices have shot up, and new ones in short supply with long waiting lists.

For some reason, laptops seem very a very popular new purchase too. And in short supply, long waiting list.

The other side of the coin from 'Got to stock up on toilet paper'?

Wife went mad on stocking up on toilet paper, hand sanitizer, liquid soap.
Still doing it.
Got enough for the next year or so. Probably longer.

I'm OK for cars and laptops though. lol

[C Moon]

16. I'm seeing "new plates" cars everywhere.

[Midnight Writer]

4. Houses are selling in my area, often the same day they are listed.

[TexasBushwhacker]

6. Yeah, I just gave up on buying a house

I was kind of iffy about it anyway, but I just can't make that important of a decision that fast!

[Midnight Writer]

8. I'm with you. Now I'm looking into some remodeling on my old digs.

People can't actually be inspecting these properties when they go that fast.

[TexasBushwhacker]

9. Yeah, my brother is remodeling

and then he's going to do a refi to take some cash out and do more remodeling. He and his ex-wife bought the house 12 years ago! But he likes to tinker, so a fixer upper was right up his alley.

[eilen]

17. Most home buyers are waiving the home inspection

and adding cash on top of the asking price now in my area.

[Footay]

5. It's crazy

I heard the term "revenge travel" the other day. It seems people are making up for lost vacations by booking more and higher-level trips. As a travel agent, I can confirm this. While 2020 was a nightmare, 2021 is crazy. I have been nonstop with requests in the last 6 weeks and am running into availability all over. It's nuts!

[TexasBushwhacker]

7. Meanwhile, I have a former co-worker who is an HR manager

that hasn't worked in a year other than the occasional temp assignment.

[oldsoftie]

11. Time to change positions; everyone is offering jobs around here

Bottom to top its been tough finding workers

[TexasBushwhacker]

12. She's in her late 50s

She said she's gotten interviews.

[Elessar Zappa]

18. Businesses need to increase pay

to attract workers. I think people are tired of working full time and earning poverty wages.

[IronLionZion]

13. If they're having trouble finding workers, time to raise wages and benefits

or improve other conditions like hiring employees instead of temp/contractor/gig workers.

Some of the local restaurants here have stopped offering takeout because they have so much in-person dining they can't keep up.

[NBachers]

14. We have gaping holes in my hardware/ lumber store, and prices are going up as quick as we can change

them. Horrible stock and delivery problems. One of our vendors is Ace, and they're out of all sorts of essential products we've been selling for years.

Manufacturing, shipping, and distribution are all way behind. I am so tired of apologizing for not having what people come to buy.

And Home Depot's using this to nail down exclusive agreements with manufacturers, and dry up supply for everyone else.

[oldsoftie]

19. "just in time" inventory styles are going to have to change

And we HAVE to stop getting so much shit from China

[twodogsbarking]

20. Gun and ammunition sales

are up too. A bunch.

[Omaha Steve]

21. After a review by forum hosts....LOCKING

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