Much has been written about the abandonment of political support for manufacturing in the United States. As neoliberalization and globalization became the economic systems that were destined to lead us into the new millennium, manufacturing at home was neglected. This put a strain on supply chains, responsible for shipping goods all across the planet.
Then there was the rise in eCommerce and online shopping. No longer confined to picking up goods at the local stores, American consumers began ordering more and more online and buying less in person. Amazon became a global superpower alongside its two-day shipping. And more pressure was applied to the supply chain.
The Pandemic Added More Stress
After COVID hit, online purchases skyrocketed as citizens were locked down in their homes and advised not to go outside or interact with any potential carriers of the virus.
Consumers were not only buying essential goods either. Everything from Pelotons to video games to new home appliances and more were being bought and shipped at higher rates than before.
The pandemic also forced some companies to make layoffs or create new restrictions for safe working conditions. This happened even as the logistics industry was already complaining about a shortage of truck drivers.
With these coinciding events, the supply chain disruptions have now come fully into focus with delays and a labor shortage affecting many companies.
How Long Will The Supply Chain Be Affected?
We can likely expect these disruptions to further rock the American economy leading up to the holiday season and purchases ramp up and impatient consumers demand their products on time for gift-giving.
Weston LaBar, the head of strategy for Cargomatic, a freight company, spoke to Yahoo Finance and said, “I don’t see a line of sight where this ends anytime soon.”
He continued, “One of the big impacts of COVID was the impact of e-commerce and the need for more drivers in the industry, the need for more infrastructure in the form of local delivery centers, to be able to get products to homes, and this continues to impact the supply chain,” LaBar explained.
Truck Drivers Needed
The Department of Transportation has already asked the trucking industry for their help in assessing problems in the supply chain. But only hiring more drivers will solve the problem of a lack of people needed to haul freight around the country.
In order to attract more truck drivers to the profession, lobbyists are attempting to expand the pool of available drivers by lowering the age of interstate long-haul drivers to 18 years old and also offering more visas to drivers from overseas. Some trucking companies are even resorting to finding drivers the old-fashioned way, by offering huge bonuses and paying them more.
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