Locally and nationally, supply chain issues have seen some improvement. The backlog of container ships into major U.S. ports has not resolved but has improved significantly from this past summer. Many sectors are still struggling to fill positions but, in some industries, we are starting to see some downsizing/layoffs activity. While there are some positive trends, the situation in Ukraine, the sanctions on Russia, the potential for ongoing lockdowns in other countries, are some of the variables which continue to create uncertainty.
Supply chain issues, labor shortages, Federal Reserve interest rate increases, and energy continue to put upward pressure on prices. According to the most recent news release from the US Bureau of Labor Statistics (bls.gov), the Consumer Price Index (CPI) is up 7.7% from a year ago in October. And, according to the US Energy Information Administration (eia.gov), the prices for crude oil, natural gas, and diesel, are all up significantly adding to the cost of production and transportation. Therefore, you may have noticed some suppliers are increasing prices and implementing surcharges. While these are often necessary to offset the impact of these increased costs, it’s important to ask for detailed justifications from suppliers to ensure these are legitimate temporary cost increases and they appropriately deescalate price increases as soon as they can. As you continue to plan your purchases and evaluate suppliers, we encourage you to consider the complexities of the supply chain in your decision making and PLAN AHEAD.
For specific questions related to supply chain issues and/or increasing prices or surcharges, please contact Procurement at financecustomercare@ohio.edu