Martin Cruz knows firsthand how the ongoing supply chain issues affecting businesses across the country have made the already tough restaurant business even more challenging.
As manager of Chinatown’s two Austin restaurants, the business made numerous changes to adapt to the coronavirus pandemic, only to find itself confronting another round of issues as distribution channels have been disrupted.
The upending of the supply chain is making it difficult — and in some cases impossible — to get the products and materials needed Chinatown needs to keep its customers fed and its restaurants stocked, Cruz said.
“It’s very difficult, especially for small businesses,” Cruz said. “There’s big competition among all industries now for everything — logistically, monetarily. We’re family owned, so it’s harder for us because we literally have to scrape for what’s left over. We really have to get down and dirty about where we can get our supplies. Other restaurants also are struggling to keep up.”
It’s a similar story for a wide range of Central Texas businesses.
The global supply chain is the network of businesses and operations needed to get products built and delivered to consumers. The coronavirus pandemic and a number of other factors have created labor shortages, limited manufacturing and created shipping and delivery problems.
“Supply chain issues are occurring all over the country — and the world for that matter — and Central Texas is no exception,” said Ray Perryman, an economist based in Waco. “In essence, the $100 trillion global economy was shut down last spring, and restarting it has not been easy. With shuttering of manufacturing facilities and transportation interruptions during the pandemic and other logistical challenges, there are shortages in numerous items.”
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The shortages are leading to highers prices for consumers. The Labor Department reported last week that the prices consumers pay are up 5.4% over the past 12 months, matching the fastest pace since 2008. Gasoline, furniture, cars and trips to the grocery store or restaurant have all become more expensive.
One issue, Perryman said, is labor shortages at ports not having enough workers to unload the containers. Adding to that, a shortage of truck drivers to take the containers from the ports as well as equipment shortages, have caused a major backlog of containers waiting to be unloaded.
“There are also labor shortages in some of the local areas slowing delivery times to retail establishments,” he said. “Companies are currently working 24/7 to address the problem,…
Read More: Austin businesses are feeling the pain of supply chain issues