Unfortunately, it seems that the current supply chain crisis is not going to subside anytime soon. This according to a survey sent out to chief financial officers.
The CFO’s surveyed were from a wide range of businesses, and most expect the current climate to last “well into” 2022. Many indicated their companies are experiencing supply chain disruptions due to production and shipping delays. An increase in prices on materials has also caused some delays.
The survey, released on October 14th, was compiled by Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta.
Only 10% of those surveyed indicated that they expect the current supply chain difficulties to be resolved by the end of this year. The majority responded that they did not see a resolution coming until the second half of 2022.
Respondents also said that hiring is an “even more pressing concern” right now. Roughly 75% indicated that their companies are facing challenges filling open positions. The majority indicated that they have raised wages by about 10% to try to fill the vacant positions.
The supply chain difficulties are nothing new and have been on ongoing challenge during the pandemic. On Wednesday the White House announced it will be working with companies and ports on a “90-day sprint” to try to relieve bottlenecks and holdups.
Ports around the world are facing similar challenges. The increased demand for commodities and goods as the global economy recovers from the pandemic is overloading shipping lanes. Companies trying to answer consumer demand are finding a shortage of ships, containers, and trucks to answer the call.