by | Jun 29, 2021

you are a regular reader of my column (thank you, by the way!), you know that
COVID caused a massive disruption in the supply chain for most global industries. According to Accenture, one of the leading
multi-national strategic consulting organizations, “94% of Fortune 1000
companies are seeing supply chain disruptions from COVID-19; 75% of companies
have had negative or strongly negative impacts on their businesses.”

many parts of North America are beginning to re-open, many areas and economies
are still in lockdown. In addition, most
of the new health and safety guidelines still require a reduced workforce at
one time.The
bottom line is that everything has and continues to run at a snail’s pace.

that manufacture within Mexico are impacted since many of the raw goods are
imported. No fabrics, no nuts and bolts,
no foam, no wood means delays on the assembly line. What might have taken four weeks to order and
receive in pre-COVID times can take four to five months, if not longer.

addition to long wait times, economists predict that consumers in North America
can expect a massive increase in retail prices by this fall. This price increase will also happen in

primary imports are consumer goods (already manufactured) and parts and
materials needed by industries that manufacture items. The total amount Mexico imports from the
United States and China is staggering.
From the United States, it was an estimated $168 billion in 2020, and
from China, an estimated $74 billion.
Regardless of whether consumer or raw goods, all this trade requires
shipping containers.

COVID began, shipping companies reduced or halted much of their cargo
fleet. In addition to a drastic
reduction in overall traffic, the empty shipping containers were not collected
and shipped back. Generally, the containers
are emptied and then refilled and returned to their original point. With COVID and reduced trade, they were left
at docks and endpoints.

the first country to face the COVID shutdown, was also the first to restart its
import and export. Unfortunately, most
of the world’s shipping containers are now empty and stacking up in North
American ports.

port terminals, reduced staffing is also causing delays and contributing to the
shortage of returning shipping containers to the far east. There is currently a staggering backlog of
cargo ships at every terminal in North America, awaiting approval to dock and
unload. More shipping containers are
going nowhere.

the demand for goods so high, shipping costs, including the cost of space on
cargo ships and containers, have skyrocketed.
It is unprecedented in history.
Compared to the cost pre-COVID, shipping and containers costs at least 5
to 10 x more right now. Many companies
are already either increasing their retail prices to offset these added
costs. Small to mid-size businesses face
making no margin unless they raise their prices. Raising their retail prices so they are 5 to
10 times higher to cover the increased shipping costs is the only option.For
anyone who has purchased a new home in Puerto Vallarta, or if you were planning
on buying furniture or large items when you get here later this year, take
heed. Buy now. Unless a miracle happens, be prepared to pay
significantly more shortly. This
includes any furniture either imported or made right here in Mexico.

Want to purchase furniture right the first time
for your home in Vallarta? We specialize
in helping you find the manufacturers and suppliers that use the correct
materials with the proper processes. Visit us at o
ur Puerto Vallarta store: 363A Constitucion just off of Basilio Badillo (Open
Mon through Fri 10 to 2). Our Bucerias
store is at Heroes de Nacozari 126 (Open Mon through Sat 10 to
2). If you are not currently in Mexico,
email us at or Whatsapp
us at +3221365156 and join our Facebook Group: Mexico
Furniture and Décor
for ideas and inspiration.

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