The Holidays and Supply Chain
The holidays are upon us, and everyone is preparing food, attending family gatherings, and buying gifts. Thankfully, experts are seeing an ongoing improvement in the supply chain, meaning online gift orders should arrive on time, and the economy should improve quite a bit in 2023.
Supply Chain Improvements
According to Reuters, the pressure on the supply chain has eased up since September, and things are flowing more quickly and efficiently now. The immense burden placed on the supply chain by the pandemic is finally ebbing away as things return to normal.
The last time the supply chain was “normal” was in January 2020, just before Coronavirus heated up. The report from Oxford Economics said that as transportation improves, prices are also declining, and inventory is rising.
Supply Chain and Inflation
The pressure on the supply chain is part of what has caused the recent inflation. The Federal Reserve recently raised interest rates to slow short-term borrowing to balance supply with demand, and it appears to be working.
As the supply chain improves further, experts are hopeful that it will positively affect the economy and bring prices back into line with before the pandemic.
Although interest rates remain high, the price of real estate is coming down, and the first quarter of 2023 should see even more improvements, with the latter part of the year returning to a healthy pre-pandemic state.
Hope for a Better Future
Although no one can accurately predict the future, all indicators point to an improved marketplace and a healthier supply chain. These positive signs point towards a better future, although everything may take some time to catch up.
Contact Southern Companies if you want to know more about improvements in the supply chain or how they might affect your business.