Inflation Hits a New High. What Can Manufacturers Do?

By Logan Wamsley

A new report was just issued by the U.S. Labor Department containing the latest inflation figures, and despite significant interest rate hikes by the Federal Reserve with more promised by the end of the year, the news is worse than even the worst estimates predicted. According to the report, prices raised 9.1% from a year…

Inflation and Shipping Costs Hit All-Time Highs

By Logan Wamsley

In the wake of the Federal Reserve’s recent announcements that they will reduce their balance sheet by as much as $95 billion per month — with anticipation they will deliver two half-point interest rate hikes in the coming months — inflation remains at approximately 8.5%, its highest level in over 40 years. The warning signs…

Lead Times Increase to Highest Levels Seen Since 1987

By Logan Wamsley

The hope moving into 2022 was that as COVID restrictions across the global supply chain waned and ports gradually improved their infrastructures to match the quantity of inventories being shipped, there would be some signs that the struggles seen in 2020 and 2021 would be waning. Unfortunately, that does not seem to be the case.…

The Problem with Just-In-Time Inventory

By Logan Wamsley

According to a recent study from commercial real-estate firm CBRE, nearly 96% of existing space in the U.S. is currently in use, and large companies are working quickly to adapt to a new but uncomfortable reality: space, where it can be found, is expensive. For today’s manufacturers, it’s not uncommon to pay up to 30%…

Shadow Inflation and the Effect on Inventory Carrying Costs

By Logan Wamsley

Most people are familiar with the concept of inflation, a monetary phenomenon that occurs when individual currently loses its value. As a result, basic goods and services increase their prices to maintain profitability, while personal income such as wages often stay stagnant as individuals see their dollars stretching less and less. Taken to its extreme,…