• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Fed Sees Supply-Chain Issues Growing Despite Better U.S. Outlook

Fed Sees Supply-Chain Issues Growing Despite Better U.S. Outlook

Supply-Chain Issues
April 15, 2021
Bloomberg

The Federal Reserve is seeing both labor and material shortages mounting up across several sectors of the U.S. economy, which may have consumers paying even more for everything from fuel to new homes.

In the Fed’s Beige Book report released Wednesday, the central bank references “shortage” or “shortages” 37 times, up six mentions from a previous decade-high total in March. That’s also 12 times more than the same period in 2020, during the early days of the COVID-19 pandemic.

Shortages have been a persistent economic theme since the early days of the outbreak, when store shelves were completely emptied of lockdown necessities such as toilet paper, hand sanitizer and personal protective equipment. More than a year after the pandemic’s onset, scarcity concerns are primarily focused around global supply-chain issues and strengthening demand in the rebounding economy.

The regional banks in Dallas, Philadelphia and San Francisco and all noted that the week-long Suez Canal blockage contributed to the shortages.

The regional overviews mentioned shortages related to microchips and semiconductors nine times, the same total as the March reading, but up from zero references in the January 2021 report. Despite the supply-chain bottlenecks around the essential tech component, auto sales broadly grew and manufacturing activity also expanded, with more than half of the bank’s districts reporting robust growth in the sector.

The semiconductor dearth constrained auto inventories, the Fed said. The auto industry has struggled to source chips as semiconductor makers have allocated more capacity to consumer products after the pandemic prompted a surge in orders for smartphones, TVs and computers.

Hiring remained a widespread challenge, particularly for low-wage and hourly workers, putting downward pressure on job growth. However, some firms said that absenteeism related to the virus was down and employment expectations were generally bullish. Wage growth accelerated slightly across the board, notably in manufacturing and construction, where labor shortages have been particularly challenging.

‘Continued Price Increases’

Outside of labor constraints, increasing input costs also put upward pressure on prices, particularly for raw materials like metals, lumber, food and fuel, the Fed said. Nationally, cost increases were partly attributed to ongoing supply-chain disruptions and exacerbated by severe winter weather events, particularly in the manufacturing, construction, retail and transportation sectors.

So far, businesses are mostly bearing the brunt of rising costs. It remains to be seen whether those labor and materials constraints will catch up with consumer prices.

“There were widespread reports of increased selling prices also, but typically not on pace with rising costs,” the report said. “Contacts generally expect continued price increases in the near term.”

RELATED CONTENT

RELATED VIDEOS

Logistics Global Logistics Transportation & Distribution Global Supply Chain Management Global Trade & Economics HR & Labor Management Automotive Chemicals & Energy Food & Beverage High-Tech/Electronics
  • Related Articles

    Vietnam’s Supply Chain Role to Grow Despite Covid, U.S. Chamber Says

    U.S. Retail Imports Are Growing Despite Tariff Threats

    Growing U.S. Population Demands Better Transportation, Delivery Infrastructure

Bloomberg

Global Oil Trade Shakes Up After Fires at U.S. Fuelmakers

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • INTERIOR OF A CHICKEN FARM, WITH WHITE CHICKENS AS FAR AS THE EYE CAN SEE

    Worst Avian Flu in U.S. History Is Hitting Poultry

    Food & Beverage
  • TWO FINGERS MANIPULATE WOODEN LETTER BLOCKS TO TURN FROM SHOWING THE WORD RECOVERY TO RESILIENCE

    Five Challenges to Supply Chain Resilience in 2023

    Supply Chain Visibility
  • A PERSON HOLDS UP A TABLET COMPUTER IN A WAREHOUSE, SUPER-IMPOSED BY A GRAPHIC SHOWING A COMPLEX WEB OF SUPPLY CHAIN ELEMENTS

    Three Post-Pandemic Actions for Repairing Global Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing