Rapidly expected improvements in US manufacturing result in supply disruptions and increased demand for products leads to increased demand for higher costs of materials.
Prices of steel, aluminum, wood and other materials are rising in response to higher order volumes. The commodity supply chain is now filled with orders, leading some producers to add weekend hours and overtime to employees. According to manufacturers facing extended wait times for essential supplies, orders now take a week or two to fill during the summer.
“Lack is what kills you,” said Mark Verhein, president of Church Metal Spinning Company, a Milwaukee-based manufacturer of steel parts for large industrial engines. “If you can’t get the material, it’s worrying.”
When several factories closed for more than a month last spring to stop the spread of coronovirus, production of industrial goods also stopped. While manufacturing was expected to slow recovery in the US economy entering a recession in February, investors evaporated, and suppliers worried about production. But demand for durable goods declined in late summer and accelerated even during the fall and the Kovid-19 transition rose to record levels.