Supply and demand disruptions continue to cause shortages post pandemic
LINCOLN, Neb. (KOLN) - From skyrocketing labor prices, not enough chlorine to meet pool needs and bike shops being hard pressed to keep bikes in stock.
10/11 NOW has covered a lot of shortages, and now we’re sitting down with University of Nebraska professor about why it’s happening and how long it’s going to last.
These shortages and price hikes that go with them are becoming part of our every day conversation post-pandemic and now another one is being added to the list - used cars.
“It’s becoming a real problem,” Tom Dean, General Manager at Durst Automotive said.
Typically there are about 100 used cars at Durst. They’re down to 75 right now and have had to work hard to keep that many in stock. Prices are also about 10% higher.
“We’ve had to expand our horizons,” Dean said. “We’ve had to go out of the Southeast Nebraska area, venture to big cities and more states.”
But used cars are just another shortage on a growing list, all caused by supply and demand issues.
“Anytime there’s a change in either of those things, either supply or demand, we’re going to have a problem and what we’re seeing now are disruptions on both ends,” Dr. Jennifer Ryan, Department Chair and Professor of Supply Chain Management and Analytics said.
Ryan said while there are a lot of problems causing those disruptions, the main was is the pandemic and how quickly life has gotten back to normal in the United States.
“You can’t shutdown a manufacturing facility and then open it back up on a whim, companies have to plan, have to hire workers, get materials in,” Ryan said. “We knew it would take a while to get these things back up and running but what we didn’t know was how quickly that would have to happen.”
Ryan said the only solution is time.
“How do we fix this,” Ryan said. “We need stability.”
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