According to data from the Consumer Brands Association, the consumer-packaged goods industry is facing a major labor and supply chain crisis which shows no signs of easing.
Formerly the Grocery Manufacturers of America, the CBA reports food and beverage manufacturers continue to experience supply chain constraints, delays in shipping, inflation and increased fuel prices and a difficult time finding labor. Last month, The Wall Street Journal reported that at times grocers have been receiving as little as 40% of what they ordered, and food companies are expecting disruptions to last into 2022.
Another factor is with the Delta variant, more people are again spending time at home. This has led to increased consumption of some products and has placed a demand for food and non-food products similar to early 2020. There are also reports of stockpiling of some products by supermarkets as well as consumers.
Major companies have taken steps to solve the labor shortage. Walmart has announced it will increase the pay of over 550,000 hourly workers while others are raising salaries or offering “signing bonuses” for new workers.