The consequences of the pandemic when it comes to supply and manufacturing have been long lasting and it may be a while before we can see the light at the end of the tunnel. With the delays in transit times, shortages, low employment and more, many of us have had to practice patience or look for alternatives to continue business as usual. We’ll go through all the shortages that many of us are facing and give you a inside look into how it is affecting Los Angeles print shops like ours.
The Domino Effect
In early 2021 as covid restrictions began lifting, we started to notice the biggest change in supply and demand. People’s spending habits not only shifted back to normal but in the case of eCommerce the changes show an astonishing increase in sales, which created more demand as the supply was running out.
More notably, we are seeing this play out with restaurants who are not only having a hard time hiring and retaining employees but are also experiencing a shortage in supply and slow shipping.
Read US consumer sentiment and behaviors during the coronavirus crisis
Rising Costs
With low inventory and manufacturing issues coupled with inflation many industries are raising manufacturing costs. You may be seeing this most notably with the price of food at your local supermarket.
For print shops across the US, costs have increased and we believe they will increase more as shortages continue. As an apparel business, you may be faced with the tough decision to either raise your prices or look for alternative styles that match your previous COG.
How is The Shortages Affecting Apparel?
According to Forbe’s consumer report on apparel, the industry welcomes the rise in prices but remains tenuous. For a business like a print shop that offers t-shirts and hats, the story is a bit different. As a print shop and fulfillment business, we are in a tough position, however, we strive to work with our clients on finding solutions and weathering the storm.
Where do the shortages start?
The supply of garments are mostly imported from countries such as China, India, Pakistan and Bangladesh; where the Covid-19 restrictions are tougher and employers are forced to minimize their work force to avoid further spread of the virus.
Data from 2020
Besides the delays in manufacturing, we found that the primary reason for the shortages is delays in shipping. Because materials such as cotton is grown in one country and processed in another as well as the actual creation of the garment and then shipped to you (or us) for printing. The various stage of making apparel coupled with slow transit times are causing much of the shortages.
Furthermore, because of the increase in demand across the board, countries like China are having a hard time keeping up with the shipping due to delays of cargo containers. In 2020 containers were not being shipped back at the same rate they were arriving to our US ports, this has created a bottleneck effect and is contributing to delays.
In addition to delays, the cost of shipping containers has increased from $1,500 in early 2020 to now in 2021 at almost $9,000 per 40ft container. This is yet another reason why costs have gone up.
Read more about Why The Pandemic Has Disrupted Supply Chains
Unable To Meet Demand
During the early months into the pandemic, online shopping grew 32.4% and has overall helped the eCommerce sector for most industries including small independent apparel brands. Young people are moving away from traditional fast fashion retail stores and seeking unknown and more exclusive apparel brands.
Source: Digital Commerce 360 analysis of U.S. Department of Commerce data
Due to high demand, we recommend to make a plan and order your apparel NOW while styles are still in stock or pre-order apparels in anticipation of further shortages.
Conclusion
DON’T WAIT - Order what you need now or in advance to minimize wait times and secure inventory.
FIND ALTERNATIVES - Should specific garments not be available, talk with your screen printer or supplier to find the best alternative for what you are looking for. This issue may persist well into the following year, so finding an alternative could be your best bet.
RAISE YOUR PRICES - With inflation on the rise and the obvious increase in cost, it is a good idea to begin raising your prices incrementally and in anticipation for overall costs increasing.
Author: Irene Floridia - Content Creator
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