Supply chains

[Nickdixon]

supply chains are interesting. I discovered that certain batteries used in home generators were in short supply...mine went bad due to a transfer switch malfunction about a month ago. Reason? The increased demand in Florida, Texas, and Puerto Rico due to the recent hurricanes. Thankfully, I was able to get one from NAPA because the ice storm season is upon us in the Ohio valley.

[ksanders]

Lots of stuff in short supply right now due to the hurricanes. We are just now getting power restoration products onto the island for private enterprises

[Pcpete]

Any supply chain can be upset by an event whether real or rumor. Production is based on raw material supply, predicted sales and factory capacity to build or convert the raw materials. It’s a dynamic I worked in for over twenty years. Semi skilled and skilled labor to build whatever from miners, farm hands, cooks, machinery operators, anyone involved directly or indirectly to getting that product to the shelf, is, if not available, a potential issue. For example, if a rumor started about sugar production being predicted as significantly reduced because of the hurricanes, the flow of how quickly packaged sugar is delivered to stores could be upset due to people stockpiling and empty shelves resulting. Nothing is actually wrong, just the rumor.
An example of increasing capacity would be how a brewery in Atlanta converted to bottling water rather than beer to meet emergency drinking water need after the hurricanes this year. Not all industries are as flexible. It’s kinda tough to produce more sugar quickly because the farmland and machinery needs to be available, then there’s the time to grow the sugar plus processing, packaging and delivery. Reallocating product is the most common way to address the shortage, which is what is happening with the batteries which often increases prices due to what the market will bear. Obviously, I enjoy the dynamics of supply chains...except when what I need isn’t available.