Slowly our economy and the global economy are starting to roll and gather speed. The wheels of the recovery, however, are slowed by missing spokes. Supply chain issues are affecting almost everything. In Canada, supply issues are holding back the speed of economic recovery.
The pandemic has left a destructive issue in its wake, disruption to global supply chains. Factories around the world were either closed or slowed, diminishing production. Additionally, during lockdowns, consumer demand decreased, leading to further reductions in production.
The challenges now facing supply chains, as we ramp up, are numerous and won’t be quickly overcome. Manufacturers and distributors of goods cannot produce or supply as much as they did pre-pandemic for numerous reasons. Key among them are shortages in raw material and labour.
Global experts say we may not have seen the worst. Tim Uy of Moody’s Analytics says, “Supply will likely play catch up for some time, with bottlenecks throughout the supply chain, starting at raw materials, and running through labour, containers, shipping, ports, trucks, railroads, air, and warehouses.”
For trucking, supply issues include ongoing driver shortages, rising fuel costs, and slowdowns in the manufacturing of new trucks, trailers, and parts.
Meaning Canadian trucking will undergo a slow build-up in business and activity. As important as these issues are to Canada, we must realize that we are a smaller cog in a global-sized wheel.
For Canadian consumers, the real issue is supply-demand. Pent-up demand and a lack of supply mean higher costs on many items. September inflation hit an 18 year high of 4.4%, a worrisome trend that could last for a while.
The pandemic proved trucking was there for us when we needed it most, and undoubtedly it will be there for us again. For now, the bumpy ride is not over, keep buckled up!
