I understand how they got delayed initially, but what factors have prevented things from rebounding? For instance, I work in the medical field an am being told some product is “backordered” multiple times a week. Besides inventing a time machine, what concrete things are preventing a return to 2019 supplys?
In: 93
Shipping been mentioned a lot. So I’ll skip that one.
Companies are very lean. Ie most get and ship the same amount of items the same day so no storage.
So, expand this to the whole industry and it takes a long time to build back up. Take something like an Xbox.
Lots of chips and plastic. Chips and plastic come from oil and silicon. Oil and silicon come from mining. Mining requires equipment that requires an entire mining industry(which requires its own supply chain)… ect… so you need the industry that makes the mining equipment back online(and all the services that support mining) then you need all the raw material to come in, then you need all the chip and plastic industries back, then you need all the assembly plants back, then you need all supporting industries in place, then you can make one and put it on a shelf.
Over simplified and an Xbox might not be the best example but you get the point. Products that seem readily available might take a year plus to go from raw material to the product. When all these sub suppliers shut down it takes time to get back to the point where you pushing them out to keep up with demand.
Expand to cars or more complex things and it takes a lot! To get to the point where you just pumping out a sedan every 45seconds
Edit: not sure what you do in medical I was assuming things like devices that’s why I used a device example. If it’s medicine I’m not sure but assume it’s similar.
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