'These systems are very fragile': Global supply chain disruption has local impact in lead-up to busy shopping season
With one of the busiest shopping seasons of the year approaching, filling shelves and orders these days may come with extra challenges for many businesses due to ongoing issues with global supply chains.
The pandemic has disrupted the worldwide movement of all kinds of products, and it’s not clear when those problems could be resolved.
Granville Island Toy Company owner Joanna Mileos said there are definite issues with supply at the moment.
“Whether it be containers, or whether it be factory shutdowns during COVID and they just haven’t had enough time to produce decent quantities,” she said. “It’s definitely been having a trickle-down effect, not just in toys, in everything, and I think we’re already seeing price increases right across the board.”
She said the cost of shipping containers has also gone up, at a time when there’s a shortage, and some suppliers are working on managing expectations.
“We’re already seeing suppliers who are telling us we’re not accepting any orders for the rest of this year,” she said. “There (are) suppliers who are sending out their availability lists on a regular basis to say, hey, this is what we have in stock, and we may or may not get any more products.”
University of Victoria associate professor Adel Guitouni says at the same time as the shipping slowdown, consumer demand has also surged.
“People are buying more stuff online and so on, because that money that was usually used for travel or other kinds of expenses, we are doing renovation, we are doing other things,” he said. “These systems are very fragile right now, and what we see today is just the symptoms of the fragility of the system.”
He said the strain on global supply chains pre-dates COVID-19, as companies outsourced for cheaper production, and the pandemic has only exposed weaknesses in the system.
“As we have been developing these chains, we did not invest at all in resiliency,” he said. “They have been built mainly for the sunny days.”
He said this situation could provide an opportunity for local and domestic industries to compete, and for consumers to think more locally.
“When you have a strained kind of system, if you start pulling, either someone has to give or it’s going to break,” he said, and added current supply chains also create pollution that contribute to climate change. “This is an opportunity for us to rethink all of this.”
Mileos said growing support for local businesses has been one positive during the pandemic.
Her advice for holiday shoppers this season is not to wait too long.
“The earlier the better this year, for sure,” she said.
CTVNews.ca Top Stories
BREAKING New York appeals court overturns Harvey Weinstein's 2020 rape conviction from landmark #MeToo trial
New York’s highest court on Thursday overturned Harvey Weinstein’s 2020 rape conviction, finding the judge at the landmark #MeToo trial prejudiced the ex-movie mogul with improper rulings, including a decision to let women testify about allegations that weren’t part of the case.
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Secret $70M Lotto Max winners break their silence
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Metro Vancouver mayors call for serial killer Robert Pickton to be denied parole
A dozen mayors from around Metro Vancouver say federal Attorney General and Justice Minister Arif Virani should deny parole for notorious B.C. serial killer Robert Pickton, and reassess the parole and sentencing system for 'prolific offenders and mass murderers.'
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.