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America is Choking Under an 'Everything Shortage' (theatlantic.com) 575

The global supply chain is slowing down at the very moment when Americans are demanding that it go into overdrive. The Atlantic: Is it just me, or does it feel like America is running out of everything? I visited CVS last week to pick up some at-home COVID-19 tests. They'd been sold out for a week, an employee told me. So I asked about paper towels. "We're out of those too," he said. "Try Walgreens." I drove to a Walgreens that had paper towels. But when I asked a pharmacist to fill some very common prescriptions, he told me the store had run out. "Try the Target up the road," he suggested. Target's pharmacy had the meds, but its front area was alarmingly barren, like the canned-food section of a grocery store one hour before a hurricane makes landfall.

This is the economy now. One-hour errands are now multi-hour odysseys. Next-day deliveries are becoming day-after-next deliveries. That car part you need? It'll take an extra week, sorry. The book you were looking for? Come back in November. The baby crib you bought? Make it December. Eyeing a new home-improvement job that requires several construction workers? Haha, pray for 2022. The U.S. economy isn't yet experiencing a downturn akin to the 1970s period of stagflation. This is something different, and quite strange. Americans are settling into a new phase of the pandemic economy, in which GDP is growing but we're also suffering from a dearth of a shocking array of things -- test kits, car parts, semiconductors, ships, shipping containers, workers. This is the Everything Shortage. The Everything Shortage is not the result of one big bottleneck in, say, Vietnamese factories or the American trucking industry. We are running low on supplies of all kinds due to a veritable hydra of bottlenecks.

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America is Choking Under an 'Everything Shortage'

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  • lockdowns ftw (Score:3, Insightful)

    by Anonymous Coward on Wednesday October 13, 2021 @12:24PM (#61888037)

    wtf did you think would happen when you shut things down repeatedly for a year and a half.

    • Comment removed (Score:5, Insightful)

      by account_deleted ( 4530225 ) on Wednesday October 13, 2021 @12:30PM (#61888061)
      Comment removed based on user account deletion
      • Re: (Score:3, Informative)

        Republicans don't even bother pretending anymore. Now it's automatically do the opposite of whatever democrats are doing. Take this for example:

        https://www.texastribune.org/2... [texastribune.org]

        Why does governor Abbott hate business? The party of personal responsibility, hands off government, and favoring capitalism is now suddenly all about what private businesses are allowed to do.

        Same with Florida. Schools funded by public money want to mandate masks? Oh no you aren't allowed to do that. You must do exactly as I say.

        • Now it's automatically do the opposite of whatever democrats are doing.

          Well, I'm British and I take very little interest in US politics - but that does look like a sensible idea. From what I've heard about what some prominent Democrats say and do.

          The most basic rule of sanity is to respect reality. As Philip K. Dick said, "Reality is that which, when you stop believing in it, doesn't go away".

      • by Luckyo ( 1726890 )

        Supply problems have comparatively little to with US. In fact, both US and EU areas have been largely able to deliver the industrial outputs even with some lockdowns that they had. Problem is that almost everyone outside, had and keep having actually crippling lockdowns. And supply chains are global at the moment and much of industry works on very tight tolerance JIT manufacturing model that easily chokes on even a single input lagging behind.

        And right now, a lot of inputs lag horribly, because a mine, a fa

      • Re:lockdowns ftw (Score:5, Informative)

        by swillden ( 191260 ) <shawn-ds@willden.org> on Wednesday October 13, 2021 @03:28PM (#61889005) Journal

        "Two months of everyone getting mandatory vaccines, with teachers, first responders, nursing staff, and others likely to spread the disease put higher in the queue" which was possible early this year, we wouldn't be in this situation.

        I happen to be in the Netherlands at the moment (on a business trip), and I'm finding it really nice. No one is wearing masks, anywhere, and what social distancing remains feels more like acquired habit, rather than anything being recommended/required. Everything is fully open, all services are available. I'm sure shortages are an issue, of course, because that's a global issue.

        What makes this normalcy possible is very simple: To go to any restaurant, bar, movie, office, sporting event, or any other place where people gather indoors outside of the home, you have to be able to prove that you are either fully vaccinated or have had a negative COVID test in the last 24 hours. The mechanism to prove that is digital and pretty streamlined, so in practice it really isn't a bother. The result is that life is nearly indistinguishable from pre-COVID times. It's really nice.

  • by rsilvergun ( 571051 ) on Wednesday October 13, 2021 @12:29PM (#61888059)
    and they keep having to close factories to keep their hospital system from collapsing.

    We also used computers to determine the bare minimum amount of slack we needed in our supply chain in order to maximize profit, and we slashed gov't involvement in our supply chain in the name of "the free market" (read: short term profits and tax cuts for the top).

    This is what happens when nobody's overseeing the supply chains. We don't do this with our food supply, the gov't is heavily involved there (we just don't like to talk about it). That's the only reason you're not starving right now.
    • by ezdiy ( 2717051 )

      tl;dr: Markets don't preclude tragedy of the commons.

    • by Luckyo ( 1726890 )

      It's not just China. This is world wide. They're having lockdowns everywhere from Brazil to Thailand to Austrlia. China has to import a lot of raw materials and processed inputs from abroad for its supply chains.

    • It certainly isn't just China. The service industry in the US is severely under-staffed right now. Not just according to government statistics, but according to my experience trying to get a meal or hotel room lately, and also according to my teenage kids who work fast food and see it every day.

      That's not because of any Chinese supply chain.

    • The problem isn't China or under-regulation of the supply chain. The problem is really simple:

      Productivity is a conserved quantity. That is, supply and consumption have to be equal. In order for you to buy a TV, someone has to first make a TV. And the number of new TVs bought can never exceed the number of new TVs produced.

      This is the flaw with trying to spur on the economy (smooth dips like the COVID-induced 2020) via stimulus checks and low/no-interest loans. Yes you're helping to maintain demand
  • by bobstreo ( 1320787 ) on Wednesday October 13, 2021 @12:32PM (#61888075)

    Shortage of longshoremen?

    Shortage of people to unload the cargo ships.

    Shortage of cargo?

    Delays in getting anything shipped from other countries.

    Shortage of getting things shipped?

      While not critical, slow down manufacturing, sales in brick and mortar and online sales.

    Shortage of workers (because nobody wants to do the shit jobs for minimum wage)?

    Stores/restaurants close, nobody to stock shelves, mop the floor, run cash registers.

    It certainly seems as if not a death spiral, someone has flushed the global economy toilet, and the water is starting to circle.

  • Hype (Score:5, Interesting)

    by DarkOx ( 621550 ) on Wednesday October 13, 2021 @12:35PM (#61888081) Journal

    I just don't see it. I keep reading article after article about this but its not the reality at any of the grocery stores, drug stores, dollar stores, home stores etc in my area.

    There are a few obviously in demand items like COVID test kits, PS5s, and Nintendo products that 'hot' right now you can't get but reports of canned soup, paper towels, TP, and sour patch kids being hard to come by seem greatly exaggerated. This is rural becoming ex-urb area population about 25k. Maybe my expectations are different maybe more of the problem exists at the nearer-to-consumer deliver end and is impacting more densely populated areas more; I don't know.

    I also realize the problem is real, however it sure seems like a lot of this is a 24-hour news media - lets find a reason to panic - more than any sort of crisis.

    • Re:Hype (Score:5, Informative)

      by ajayrockrock ( 110281 ) on Wednesday October 13, 2021 @12:46PM (#61888123) Homepage

      For me it's weird items... I ordered a screen door back in March and it still hasn't arrived. At the grocery store, whipped cream cheese is out, regular is still there but I prefer the whipped kind. The battery in my car died, had to get an aftermarket one since the dealer had no stock. Top Ramen is constantly missing.

      So it's not anything major and I can get by, but it's really kinda weird. It makes sense that it's a failure on so many levels, sure it doesn't drastically impact me right now but I can imagine that if my meds were in one of those containers then I'd be freaking out right now. Luckily for me, it's just cream cheese.

    • by suss ( 158993 )

      Most of the empty shelve-problems here are due to the storage/delivery just-in-time algorithms screwing up, because of the hoarding of stuff last year. Somehow they haven't been fixed yet for some products, like garbage bags and some brands of soft drinks.

    • You really haven't been in a Target lately. They do indeed have plenty of bare shelves.

      • Target always has empty shelves. I tried shopping at the "flagship" store in Target's corporate HQ hometown (which is actually located in its most upscale suburb) and it was always an exercise in futility, and this was before the pandemic.

        This store was constant out of stock in many aisles. It made no logical sense. The grocery store side was impossible, they sometimes ran out of whole milk!

        I did some contract work for a Target business partner and they just laughed and said Target's logistics were awful

    • Re:Hype (Score:4, Informative)

      by MBGMorden ( 803437 ) on Wednesday October 13, 2021 @01:06PM (#61888223)

      It's a real issue its just not as dire as they report.

      Every restaurant I've been to the drive through of recently has a sign that they're out of certain items, or they'll tell you when you drive up. Granted, they're not out of FOOD - they just might not have exactly what you're looking for. IE, I order chicken strips at Popeyes the other day and they were out of spicy strips - mild only. I ordered a sausage biscuit for breakfast at BK the other morning - no biscuits, but they can sub a sausage croissant.

      There's a Chevy dealership about a mile from my house - it's a big lot, about 14 acres. They literally have about 20 cars for sale right now.

      Nothing ground breaking, but its definitely noticeable that everybody is a little short on goods right now.

      Oh and because in times of uncertainly people tend to feel a little uneasy and turn into "preppers", it's damned near impossible to find ammunition right now.

    • Automobiles, major appliances, labor for restaurants and building trades, paper products, semiconductors, groceries of all kinds, prescription drugs, furniture, etc. You'd have to be living under a rock to not see shortages.
    • Things like auto and small truck parts are in seriously short supply right now. I took my truck into the dealership in early August for a warranty repair. It took them ~7 weeks to get the parts in.

    • I also realize the problem is real, however it sure seems like a lot of this is a 24-hour news media - lets find a reason to panic - more than any sort of crisis.

      While I agree there is likely exaggeration, there are some things completely gone. Purina Friskies canned cat food is almost completely empty in every store in my part of a fairly large city. There is some gravy varieties that can be found on the shelf at times but paste variety isn't there. This wouldn't be a major issue but our cat refuses to eat much of anything other than Friskies paste cat food (she will hardly at all eat any with gravy). Sure there are other varieties but we have a cat that is bet

  • by 93 Escort Wagon ( 326346 ) on Wednesday October 13, 2021 @12:43PM (#61888105)

    But the author is extrapolating from a very limited set of his own personal experiences. He describes a grand total of three things and two local pharmacies. That doesn't give me any incentive to read his article - maybe at some point he actually talked to someone authoritative rather that the hand-waving crap that was used for the summary.

    Anyway, other than very early in the pandemic - when the issue was hoarders, not the supply chain itself - I haven't had any trouble finding paper towels, toilet paper, or other paper products. And I've never had any trouble with my prescription medicines. Prices for some things are higher, which makes sense given the increased costs being added to the supply and delivery chains thanks to COVID-19.

    • What the author might be experiencing is signs of a larger problem. After last year, most companies took steps to shore up their supply chains overall; if there is a local shortage, it may be indicative that item is not easily replenished. For example it needed a longer lead time whereas before the pandemic, it may have just required the retailer paying a little bit more shipping to get an item they did not order in adequate quantities.
  • What Truckers Say (Score:5, Informative)

    by Thelasko ( 1196535 ) on Wednesday October 13, 2021 @12:46PM (#61888127) Journal
    I got curious, and checked a trucking forum. [thetruckersreport.com] They are complaining about a lack of intermodal chassis. [wikipedia.org]

    A lot of people are complaining about just-in-time production. However, a benefit of JIT is bottlenecks are easy to find. The problem appears to be at the ports. [cnbc.com]
  • that's what you get when there are no more locally produced things, and everything is imported from south-east asia...

  • by RitchCraft ( 6454710 ) on Wednesday October 13, 2021 @12:51PM (#61888147)
    Setting up for failure since the 90's.
    • From a peacetime perspective that's not as big of an issue, but it does worry me that we've outsource the majority of our manufacturing to the very country that we're most likely to be involved in a large scale military conflict.

      Granted, we still have a decent amount of domestic production capacity for certain military items (eg, guns, ammo, vehicles), but it's pretty much guaranteed that if we ever went to war with China the shelves would almost immediately run empty of regular consumer goods.

      • ... if we ever went to war with China the shelves would almost immediately run empty of regular consumer goods.

        If we ever went to war with China, I think the fallout from the nukes would be your main worry.

  • by gurps_npc ( 621217 ) on Wednesday October 13, 2021 @12:59PM (#61888189) Homepage

    The japanese business strategy of Just In Time (JIT) delivery has been poorly implemented outside of Toyota that invented it. Basically Toyota did NOT use JIT for all their inventory, it was only used for products that were a) Expensive or Large (taking up either cash or inventory space), b) easily available, and c) source-able nearby (Japan or at most, China).

    American car companies used it for computer chips (small and cheap) that were manufactured across the largest ocean in the world (China).

    That is not JIT, it is workable-as-long-as-nothing-goes-wrong.

    Then something went wrong.

  • by Fly Swatter ( 30498 ) on Wednesday October 13, 2021 @01:15PM (#61888257) Homepage
    What could possibly go wrong? Everyone given free money so everything gets overbought, except everything is outsourced and takes six months lead time to replenish from a country also suffering worker shortages due to a pandemic, and a drought, and an energy crisis, etc. etc.

    Hey but toilet paper is in stock, it seems everyone has plenty of that!
  • This is what happens when a country becomes dependent on Asia and developing markets for almost everything.

    Mix that with a labour shortage of people not willing to work for peanuts anymore and you have this situation.

    Caused by generations of "not in my backyard" and "I want it cheaper" mentality

  • "That car part you need? It'll take an extra week, sorry."

    IT'S THE END OF THE WORLD.

  • Yet the landfills are full. Maybe we shouldn't make everything disposable and substituting buying goods and services for things that don't need supply chains, like spending time with family, sports, cooking, gardening, and things people have done forever.

  • Only in the US??? (Score:4, Interesting)

    by bradley13 ( 1118935 ) on Wednesday October 13, 2021 @01:41PM (#61888437) Homepage

    Maybe I'm oblivious, but - here in mainland Europe - I have heard almost nothing of logistics problems (the UK has...other problems). Sure, the chip shortage is global, but that's a production problem. The logistics problems seem to be US specific.

    Why should that be the case? And if it really is the case - as opposed to some stupid game being played - there's a lot of money to be made by fixing it, so: why hasn't that happened?

  • by dogsbreath ( 730413 ) on Wednesday October 13, 2021 @01:44PM (#61888459)

    ... old Soviet jokes:

    A man walks into a shop. He asks the clerk, “You don’t have any meat?” The clerk says, “No, here we don’t have any fish. The shop that doesn’t have any meat is across the street.”

  • by smoot123 ( 1027084 ) on Wednesday October 13, 2021 @01:56PM (#61888521)

    I was struck by the author's plea near the end of the article:

    The best solution to the Everything Shortage is to have a policy to make more of just about everything. Containers, which carry more than 90 percent of the world’s traded goods, are overwhelmingly manufactured in China. Why doesn’t America make more? Car parts, semiconductors, and home goods have been offshored, making the U.S. sorely reliant on overseas factories. Why can’t America make more? At-home COVID-19 tests, which could illuminate household infections and prevent community spread, were only just authorized by the FDA, almost two years into this pandemic. Why hasn’t America made more?

    That's a simple and deep question at the same time. Why can't we? Clearly, we could. I'm sure Elon Musk and team could spin up a container factory in three months.

    The deep part is realizing we don't because we'd prefer Musk keep working on making more Teslas. Every day his team spends making containers is one day they're not building a second Gigafactory. And more generally, if we make more containers, semiconductors, hair dryers, and all the other things we want, we'll have to stop making software, airplanes, PowerWalls, yoga classes, COVID vaccine designs, and all the other things we're really good at and/or can't import.

    So yes, the ultimate solution to shortages is to make more stuff. But onshoring is a way to guarantee we'll produce less stuff, globally speaking, than making things where it's efficient and shipping it. It's not a strategy without risks but it's not like other strategies don't have risks and downsides too.

    • by indytx ( 825419 )

      I was struck by the author's plea near the end of the article:

      The best solution to the Everything Shortage is to have a policy to make more of just about everything. . . . Why hasn’t America made more?

      That's a simple and deep question at the same time. Why can't we? Clearly, we could. I'm sure Elon Musk and team could spin up a container factory in three months.

      I remember early in the pandemic when masks were in short supply, and a news outlet interviewed a domestic mask manufacturer as to why he did not ramp up to more shifts to meet the demand, and the owner's answer was pretty simple. He said that he could, but that the minute that slightly cheaper alternatives were available from overseas the demand for his masks would plummet, and he would be left with lots of extra workers that he would have to lay off. Laying off employees can increase a business's unemploy

  • by argStyopa ( 232550 ) on Wednesday October 13, 2021 @02:14PM (#61888659) Journal

    I've been talking for 11 months about the global shipping crisis, because that's my job...but the worthless news media is more interested in (depending on the channel) peddling woke pity-parties or ginning up right wing rage than, I dunno, reporting actual meaningful news?

    At the same time, because the former resident of the WH was an orange-tinted buffoon, we've now instead elected a restraintless kleptocracy who only sees business as a source of tax-farming to feed the ever-hungry maw of more expansive government. Literally they're arguing over how much MORE they can/should/must take from us (they have a 'mandate' doncha know) and their ocd is about ensuring that 0.1% of the population has the right bathroom to visit than making sure the other 99.9% of people HAVE THE GOODS THEY NEED TO LIVE.

    This has been a worsening issue since NOV 2020. Nearly a full year, and the only whisper on the news are some misguided crap about "well a ship got stuck in Suez so that must have caused it". Sigh. Not even faintly true within orders of magnitude.

    It is only getting worse. There is no end in sight. Carrier congestion will accelerate to/through CNY but there's no systemically obvious point that "ok, by this time everything should be better." ...we're planning this to last all through 2022.
    My company has factories that have basically stopped taking orders through 2022...they're already full up to capacity. We've increased prices thrice in the last 9 months in reaction to Asian-import transport costs that have gone up 10x. Airfreight is 5-8x. And that's if you can find ships or planes to carry it at all.

    Right now there are more than 70 ships parked outside Los Angeles harbor, waiting to unload. In normal times, they would process and be sailing to the next port in rotation in 24-72 hours. Now they wait WEEKS.
    That is roughly 850,000 truckloads of stuff. And likely another similar amount is filling the piers, sitting for 2-7 weeks to go out for delivery or outbound rail.
    Think about those numbers. 1.5+ million truckloads of stuff just sitting at ONE port (granted, LALGB is about 40% of US imports).
    Every other port is as-bad or worse.

    You are only starting to see the tip of it in the consumer markets.
    That $1 notebook you bought for your kid for school? It's only there because Target ate what, about $9 million in a/f charges for last minute school supplies? How long do you think Target can keep selling those for $1 when it costs them $5 just to get it to the store?

    I'm no eschatological nutter but we as a family absolutely have been and setting aside basement space for more and more storage of staples we'd NEVER have considered bunkering: water, batteries, long-storable food items, etc.

    Give it 6 more months and then it might start to get real to more people.

  • JIT (Score:5, Interesting)

    by friedmud ( 512466 ) on Wednesday October 13, 2021 @02:19PM (#61888709)

    While everyone in here wants to yell and scream at the opposite political party⦠I truly think that this has more to do with businesses relying too heavily on Just In Time inventory management/manufacturing.

    Back in the day you would stock months worth of parts that are critical to your business. Through the 80s and 90s JIT came into vogue and businesses started running âoeleanâ⦠where the parts they needed would show up at exactly the right time.

    Unfortunately, this meant that any disruption to the global supply chain could cascade⦠and boy has it. If companies would have had plenty of inventory of parts and products then the system could have absorbed some of the slowdown instead of grinding everything to a halt.

    It will be interesting to see if businesses change their practices after this gets cleaned up. There is no doubt that businesses are currently losing out on many possible sales (and hence $$). The next time this happens (and it will) the businesses that learned their lesson will be in a great position to capitalize on the situation.

  • by LostMyBeaver ( 1226054 ) on Wednesday October 13, 2021 @03:12PM (#61888949)
    So, China is capable of fabbing massive amounts of older generation semiconductors...but they've had to refocus their fabs internally.

    China basically owns the shipping industry, and here in Europe things aren't so bad. Our shipments are getting here faster than ever.

    I think there is a good chance that China simply stopped prioritizing the US. After all, shipping to the US is expensive since China would send empty ships home or would have to carry soy which they are already sourcing cheaper elsewhere.

    And don't bring up England, many of us just stopped working with them. Too much work for too little gain. When they suggested I'd have to find an international accountant to file the right forms to do business with the UK, I simply moved my business elsewhere.
  • by Dan East ( 318230 ) on Wednesday October 13, 2021 @03:56PM (#61889105) Journal

    I live in a smallish, relatively isolated community. We have a mix of service industry and manufacturing industry. I can't name one single business that is fully staffed. Doesn't matter if it is a factory manufacturing Gatorade, a local grocery store, a fast food restaurant, or departments in our hospital. NO ONE can get people to work. Our population is unchanged. People haven't moved away. COVID hasn't killed any significant portion of our population (93 dead out of a population of nearly 30,000).

    The reason is very, very simple. Government stimulus, and allowing people to claim fear of COVID as a valid reason for unemployment. There's a portion of the population who would rather just break even and have the basic necessities to live if they don't have to work. They won't get ahead, or afford new things, etc, but they haven't had to work to keep a roof over their head and have something to eat, and that's adequate enough for them.

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