For many, it’s the most wonderful time of the year. Some businesses, however, shed a few of those letters and call it one of the most woeful times of the year, instead.
There are plenty of stories warning people to get their shopping done early – by the time you read this, the hot-ticket items may have already flown off the shelves.
So, can the popular baby Yoda be expected under the Christmas tree? Will there be more items in stock before celebrating the holidays?
When it comes to some goods, don’t bet on it.
Many industries shut down when COVID-19 was at its apex or massively scaled back operations. As the pandemic wanes in most places, demand has skyrocketed, and those industries have struggled to keep up causing major global supply chain issues. Associate Director Tim Uy of Moody’s Analytics says the supply chain problems will worsen before they get better.
Then, factor in the labour supply shortage. Mellon chief economist Vincent Reinhart says the U.S. economy is around one year behind the initially-expected rebound. He also adds that fourth-quarter economic growth is expected to increase by 3.5%.
The same is true for Canada. As we discussed in our blog last month, 55% of small and medium-sized businesses in our nation are challenged to find the workers they need. Therefore, orders have been cancelled, or in many cases, delayed. This is causing a massive, heavy backlog of everything from iPhones and PlayStations to artificial Christmas trees. It’s also increasing prices on every day goods for everyday shoppers. Business owners are also unlikely to be spared.
But rest assured, there are solutions. Let’s get to the good stuff now.
First, we’re all in this together. Every business owner switching their sign to “Open” in the window. Every shopper going over their receipt to understand the higher price tags. Every supplier burning the midnight oil trying to keep up with the buyers’ demands. This is not just a “you-problem.” It’s an “us-problem.” And we’re not far off from opportunity, either. As we enter a busy holiday season, demand evolves into “Christmas Demand” – a normally lucrative time for businesses.
So, what’s a business owner to do? What’s the best way to secure your supply chain?
The simplest answer is “buy ahead,” although a layer of capital in the hopper is necessary. And of course, for some businesses, it’s not just goods; equipment purchases can also be a major player in a successful quarter.
By all accounts, we’re ready to rise to the occasion. See what we did there?
Just be thankful we didn’t use a “new ‘lease’ on life” pun.
Purchase Order and Receivables Financing at your fingertips can un-Scrooge your holiday spirit by helping you keep your supply chain flowing or your shelves stocked. We’re also prepared to line up the necessary strategic leases to make the holidays a little more jolly.
That’s just the tip of the iceberg. Give us a call to discuss how we can navigate your supply chain issues. From all of us at RISE Capital, have a wonderful holiday season!