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CNBC Supply Chain Survey: Inflation’s Inventory Gluts are Here to Stay

Warehouse showing the Supply Chain

The Bottom Line

Forklift raising Cans in a Warehouse for the Suply Chain issues
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The bottom line is that your company’s bloated warehouse is likely devouring your bottom line. As a result, several companies are feeling the storage cost for the excess inventory, which will not go away this year. Moreover, CNBC tells us that those inventory gluts are here to stay as the economy weakens.

Will Inventory Normalize Soon?

Lady checking inventory
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Some analysts believe inventories will normalize in the second half of 2023. However, some analysts are skeptical, thanks to the exhausted economy. While there may be an uptick in ocean freight bookings, the longer trend lines and the weakened economy are choking big box retailers. Thus, CNBC conducted a supply chain survey to determine when inventory will normalize.

CNBC Supply Chain Survey

CNBC conducted a supply chain survey with 90 logistics managers across several companies, including the American Apparel and Footwear Association, ITS Logistics, WarehouseQuote, and the Council of Supply Chain Management Professionals. The results:

  1. Only about one-third of supply chain managers think warehouse inventories will return to normal before 2024, according to the new CNBC Supply Chain Survey.
  2. A little over one-quarter (27%) say companies are selling excess inventory on the secondary market because high storage prices are hitting the bottom line, with impacts to materialize in upcoming quarterly results.
  3. As expectations rise that Wall Street will revise earnings estimates lower in a weaker economy, almost half of those surveyed said the most considerable inflationary pressures they are paying are warehouse costs, followed by rent and labor. Many are continuing to pass those costs on to consumers.

With more inflation costs headed to the consumer, logistics must strap on its boots. Unfortunately, most logistics systems are fragile and offer only extra uncertainty and pressure amongst corporations. At Pacific Component Xchange, we offer only the best service and quality electronic parts in this current economy. If you’re running into constant inventory or supply chain issues, we’re here to help you resolve your problems. People come to us when they’re upset about rising costs and poor vendor communication.

Simply fill out our RFQ form to get an instant quote for your electronic component requests, or call us today. We can even help you sell your surplus inventory. PCX offers an extensive library of electronic components, from sensors to diodes to programmable logic controllers, even if they’re obsolete or hard to find.