California's minimum wage went up to $20/hr. for fast food restaurants with at least 60 locations nationwide that do not make bread. This law is causing widespread unintended consequences. For example, Fosters Freeze in Lemoore closed suddenly after the wage hike. Mod 5 Pizza is closing five locations.
Inflation and disruption are increasing again. Wholesale inflation as measured by the producer price index increased by .5% since last month which was more than expected. Core inflation (excluding food and energy) went up by .3% which was also more than expected.
There has been a run of strikes or threats of strikes lately with the latest UAW strike impacting the Big 3 automobile manufacturers. If it lasts longer than a few days, there will undoubtedly be a huge impact on the end-to-end supply chain as well as the economy.
Interest rates have increased by a historic amount within the last year. Increases of almost 5 points on such an aggressive timeline is already having a significant impact on manufacturers and distributor’s ability to fund and support their business growth.
It is a whirlwind and confusing. Here is a quote that sums it up perfectly: From a salesperson at a client recapping the conversations at a recent industry conference - Everyone is skeptical, but we are all seeing orders and backlog remain pretty robust.
Special Report: How Companies Should Reshape to Succeed in 2023 & Take Advantage of Huge Opportunities Coming Down the Pike
Rising interest rates have made cash flow and liquidity more important than ever. Learn how manufacturers can reduce excess inventory, improve working capital, and strengthen customer service through SIOP and better inventory management.
Listen to find out how some of the top supply chain consultants around the world are working with their clients to help them deal with rising inflation and interest rates.
In the last few weeks, I've participated in three different economic events, talked with trusted advisors and seen what clients are experiencing. From banks to economists to executives, differing views emerge. But, what is the bottom line?
In this episode of Supply Chain Chats, Lisa Anderson talks about impacts of supply chain disruptions and global unrest on inflation, recession, volatility, and opportunity. She uses the price of plastic as an example of the continuing impact from the Russia-Ukraine war and discusses China’s Zero-COVID policies impact on inflation and recession.
