A record U.S. savings rate and a hopeful jobs report signals increasing demand, but supply chain issues mean some companies will miss out, Inc. reports.
With jobs coming back relatively quickly, businesses may be in line for a healthy dose of increased consumer spending. However, Americans are notably bad at deferred gratification, a trait that will favor companies that can meet any uptick in demand as the economy continues to reopen.
Take the bicycle industry, which has seen a huge boost in demand since the start of the pandemic, but also expects many shops to be out of product by the end of next month.
Efforts to combat the challenge have been met with uneven results, as it’s tough to predict inventory needs. While no one wants to run out of product, no one wants to overbuy and waste cash, either.
For many businesses that are low on inventory, switching suppliers isn’t always possible. Some small businesses are trying to help temper customer expectations by being upfront about the potential for shipping delays.
