As the US economy continues to transition during the current pandemic— where many local and state governments are still enforcing restrictions affecting economic output—this, along with changing consumer preferences, might cause supply constraints. We assess COVID-19 effects on current business conditions.
Business supply chains are very dynamic organisms. For example, COVID-19 has affected labor shortages in certain industries which can directly impact finished-good production. “Companies like Whirlpool are reliant on hundreds of suppliers for parts,” explained LPL Chief Investment Officer Burt White. “And every one of these suppliers requires their own influx of raw materials.”
We discuss this in our recent LPL Street View video, “Why Some Items Are Still So Hard to Find,” available below and on the LPL Research YouTube channel. Please be sure to give this video a like or follow our channel, so you don’t miss anything!
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