Supply chain disruption 'perfect storm' says RHA spokesman
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Liam Halligan said that the eurozone is suffering just as badly from supply chain issues and that the current shortage of supplies is not Brexit-related. The current gap between the output from factories and orders has hit an astonishing 24-year high. Mr Halligan wrote: “The eurozone itself is suffering just as badly from supply chain issues with the gap between the output of eurozone manufacturers and the orders they receive hitting a 24-year high in July.
“The region’s manufacturers, not least the big carmakers, have struggled to keep up with global demand given input and labour bottlenecks, just as in the UK.
“That’s a major reason eurozone inflation just hit three percent, a 10-year high.”
Mr Halligan affirms in his opinion piece that the current supply chain dilemma is by no means unique to Britain.
He added in the Telegraph that “whatever the diehard anti-Brexiteers tell you” all across the globe, “companies are grappling with global shipping problems, tight supplies of steel, wood, semiconductors and other vital inputs, plus Covid-related staff shortages”
He also blamed the shortage on “rising input, logistical and also energy costs” that are “causing sluggish production and inflationary pressures too”.
Mr Halligan added that although there is a difficulty in sourcing materials and products in the UK, “manufacturers remain upbeat given steady demand for their products”.
He quoted Graeme Macdonald, JCB chief executive, who said, “our order book is absolutely full”.
The CEO added: “If you order a machine now, the earliest we could deliver is next May.
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“Given the pandemic, then subsequent recovery in demand, our backlog is four times normal levels, the bounce-back has been very strong.”
The news comes as Ikea is struggling to supply around 1,000 product lines to UK customers.
All the 22 Ikea stores in the UK are experiencing supply chain problems.
This has led to stores completely running out of mattresses and other items.
The supply-chain shortages have also affected McDonald’s, Iceland, the Co-op and Greggs who are all facing difficulties with stock.
Although Mr Halligan suggested Brexit was not to blame for the current supply chain issues, an insider who works for Ikea spoke to The Independent and said: “What we are seeing is a perfect storm of issues.
“This includes the disruption of global trade flows and a shortage of drivers, which have been exacerbated by the pandemic and Brexit.”
A spokesperson for the company added: “Like many retailers, we are experiencing ongoing challenges with our supply chains due to Covid-19 and labour shortages, with transport, raw materials and sourcing all impacted.
“In addition, we are seeing higher customer demand as more people are spending more time at home.
“As a result, we are experiencing low availability in some of our ranges, including mattresses.”
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