Market Research Snapshot
Facts at a Glance: The Economic Impact of the Supply-Chain Disruption
By SEMA Market Research
The prices of many inputs and raw materials have skyrocketed. As of October 2021, steel was 400% above where it was in October 2019. Aluminum prices (+49%) and copper prices (+66%) were also well above their 2019 levels.
The ongoing supply-chain disruption has affected businesses in many ways: shipping delays, production issues, inability to find suppliers and increased costs, to name a few. However, the worst of the effects have likely passed. Most issues, including transportation delays and supply shortages, should improve throughout the year and return to more normal levels by the end of 2022. However, some elevated prices may linger into 2023. See “The Supply-Chain Breakdown” on p. 110.
More than 75% of the U.S. supply chain moves by truck, but a shortage of around 80,000 truck drivers is causing delays and driving up prices. As of December 2021, rates were up nearly 60%, and the load per truck was three times where it was before the pandemic.
As a result of shipping delays and container shortages, container rates have quadrupled. As of mid-December 2021, freight shipping prices from Chinese main ports were 73% higher than they were in December 2020 and up nearly 400% compared to December 2019.
“As of mid-December 2021, rates for ocean shipping containers are 73% higher than in 2020 and up nearly 400% compared to 2019.”
“More than 80% of specialty-equipment companies have been severely or moderately impacted by supply-chain disruption.”