We continue to hear about and experience inflation, which many experts say is hopefully temporary, in the form of increasing costs, especially at the grocery store.
I, for one, assume that it is a combination of increased material and/or labor costs, supply-chain issues, the recoupment of some pandemic losses, and some businesses just increasing prices because high demand allows it. The problem is that you just don’t know which of those factors is at play in the case of any given item. So BJ’s wholesale club cookies were $6.99 in early May and $8.49 in late June, a more that 21% increase.
Why?
Speaking of supply chains, I am sure that you have been hearing about how many product supply chains are likely to be restructured as the result of the problems experienced during, and even as we are returning to, “normal.”
An obvious major supply-chain issue, which should eventually be resolved now that we are returning to normal, is that so many plants were closed and workers sent home during the pandemic. Beyond that, my understanding is that there are two supply-chain issues that are likely to be restructured and/or addressed going forward in many product areas.
First, there are so many of our goods that are being produced outside the U.S., so there is renewed talk about having more things produced in the U.S. Second many of our products have been produced using the “Just in Time Method.” A just-in-time supply chain is a type of inventory and material movement that takes…
