Christmas in Crisis

The crisis is caused by a combination of factors, though the exact source of it cannot quite be pinpointed. The supply chain crisis is made of a complex system and can't be blamed on a single person, company, or event but rather a collective. President Joe Biden is currently working on expanding import operations to resolve these problems as soon as possible.

An increase in demand coupled with disruptions due to COVID is a causal factor of the shortage. Christmas has always caused a sudden rise in purchases, but this year, manufacturers are unprepared due to previous shortages from the pandemic. COVID has caused a bottleneck effect around the world. These waves from 2020 will continue to make lasting ripples for years to come. These problems are further affected by a lack of workers, employees, and equipment, causing manufacturing companies to come up short on quotas. This shortage of products is causing people to buy products in abundance, which is only continuing the cycle. This is similar to the toilet paper shortage experienced in mid-2020.

This fear instilled in people is causing those to shop before it’s “too late.” This reaction is what is causing the problem to worsen. Stores are currently having trouble keeping products in stock and as word of a presentless Christmas spreads, shelves get increasingly more empty. With a lack of new stock coming in, business is looking more bare for many companies that rely on the Christmas rush.

For Christmas, this panic could cause a shortage of presents globally. And long term, the current shortage could cause problems for years to come. But over time, the shortage should gradually recover and stores should slowly make a comeback from the shortage. As long as product numbers gradually return to what they once were, the economy will stabilize shortly thereafter.

However, the process could be prolonged if people spread fear to others. The easiest way for the supply chain to recover is for consumers to buy products as needed and not in large, unnecessary quantities. Consumers around the world will have to all shop logically in order to commence a global economic recovery.

One way to avoid the rush is by ordering products online rather than in-store. This allows companies to monitor the product numbers more closely and make the correct preparations for purchases. This limit in influx will lessen the blow of purchases made during the Christmas season and allow the supply chain to recover more gradually.

Overall, we could soon see a significant change in the supply chain but the chaos can be avoided. In time, this cycle will eventually end, allowing people to holiday shop like normal without the concerns of losing out.