Scholarship table
Retailers have not even begun to pass the correct price increases onto the consumer. Logistics costs have barely been passed on and cost of goods from SE Asia continue to increase. I think after the holiday sales we are going to see an uptick in pricing on consumer goods. IMO, inflation is here for awhile and it might get ugly. Our clients are facing logistics issues, labor shortages, increased cost of goods and inflated wages. Our clients range from small startups to NYSE companies and everyone is facing these problems.
“In other words, businesses are inflating already inflated prices in order to turn a bigger profit amid people’s fears over uncertain times.”
So I heard this presentation the other day that said the labor shortages are really for two different reasons.For the services market, Covid in schools and relief payments are the biggest issue. Many of these jobs went away early in the pandemic and people just aren't going back to them quite yet because either they can't or don't need to.For the goods market, it is is the upsurge in demand, which also occurred early in the pandemic. The problem is that "goods labor" can up their wages all they want to attract those who used to work in the services market, but people who used to work at a restaurant aren't going to start unloading container ships unless they are paid a super premium to do so.Is this accurate?
jesmuIt really is a story of the big guys vs. the small guys in regard to inflated pricing. There is no doubt that I believe the Apple, Nike, auto companies and others are sharp enough to raise prices if and when they want to. I think one thing that has not been factored in is a company having ability to understand their inflated costs in real time. The big boys can navigate virtually any obstacle thrown at them and figure out a solution, smaller companies cannot use their own plane or rent entire vessels to get goods delivered.I guess to answer your question more directly, I do not believe that vast majority companies selling consumer goods are getting margins they were getting pre pandemic. We have clients that discontinued low-cost products from their line due the rising costs.
Thanks for that link, Lenny. I just read the entire piece and found it very interesting.I like the way the researchers/authors broke things down in each category, and I also didn't feel they were pushing an agenda. They presented the data they had, leaving it to readers to draw their own conclusions.
From the NYT:All of the Republican governors who opposed the $1.9 trillion Covid relief bill, which passed in March with only Democratic votes, have accepted the money it allocated to their states. Now, they’re in the awkward position of criticizing the spending while championing programs that rely on the funds. Here are some of their strategies:Gov. Kristi Noem of South Dakota derided the stimulus as a “giant handout” while outlining how she would use nearly $1 billion slated for her state to invest in local water projects and build new day care centers. She said that if she rejected the funds, they would be used by other states. (If a state rejected the money, which none have, it would instead be returned to the Treasury Department.)Gov. Ron DeSantis of Florida said the $3.4 billion the state has received so far would go toward infrastructure, transportation and work force retention. He justified it by arguing that the federal government fueled economic disruption with pandemic shutdowns and vaccine and mask mandates that he opposed.Gov. Doug Ducey of Arizona has used some of the money for education programs designed to exclude schools with mask mandates. (The Treasury Department warned Ducey in October that the state could lose some of its funds if it did not change the policy.)
wtf?? try starting a topic on this and watch what happens...you throw this bloviated crap out here to feel better knowing if we try to argue the other side or the rest of the story, this get's the LOCKDOWN faster than you can say what's the flavor of the day uncle joeyin other words, time for medication check, find a new hobby, stamp collecting, crochet, wood working, a scenic puzzle, yoga...
8 of 10
You're being generous this Holiday season.
How different states have done vs Covid (health, economy, socially, economically) https://www.politico.com/interactives/2021/covid-by-the-numbers-how-each-state-fared-on-our-pandemic-scorecard/
Spoke to a local CEO yesterday and he thinks the two biggest problems with the job market have been Boomers accelerating their retirement plans due to the pandemic and a hot stock market, and the lack of immigration (both documented and undocumented.) He is quite concerned in the long-term because both speak to not having a large enough workforce for the jobs that are currently in place.
That's mirrors what I see on a daily basis.Need to increase the H1-B visas as well to bridge the gap in technical talent.
Right increasing wages are going to fill the positions. But that is just going to put more inflationary pressure on the economy.