The Most Notable Product Shortages in 2022

Due to unforeseen issues, the world has had to deal with shortages of some critical products this year. From the effect of pandemic, to trade wars, and Russia-Ukraine conflict, countries and manufacturers are missing one or two products needed for consumption or as an input for production. Thereby causing delays in manufacturing and making consumers deal with empty shelves at grocery stores.

This is the reality of a globalized world, slowly recovering from the effects of COVID-19 pandemic and an ever-increasing demand plagued with global supply issues. Here are some notable product shortages this year.

Groceries and Food Products

As the world is recovering from the pandemic, Russia’s invasion of Ukraine in February led to food shortages in Africa. It caused the unavailability of certain food products in some parts of Europe and North America. Meat (especially beef and poultry), eggs, baby formula, canned goods, paper goods, and cooking oil have become more expensive or stocked out.

According to Supply Chain Drive, shortages of fertilizer and pesticides have also left producers with low crop yield and fewer production inputs. Also, the rising gas prices in Europe and the curbing of exports from Russia because of sanctions will keep fertilizer demand high, affecting the global supply chain.

Semiconductors

The demand for the advanced computer microchip is higher than ever as they use it in everything from automobiles to household appliances. Semiconductors have a notoriously complicated production process that is difficult to speed up, which causes a massive backlog for its significant producers.

A Deloitte report revealed that for the past two years, semiconductor shortages have resulted in a revenue loss of over $500 billion for suppliers and customers. Despite semiconductor producers taking steps to ramp up production, they are still unable to meet demands for this year.

Aluminum

One of the main reasons canned goods are becoming scarce in stores and more expensive is the tight supply of aluminum, a significant component in the manufacture of cans. China’s efforts to reduce its carbon emission has led to a drastic reduction in the country’s production of aluminum and other energy-intensive metals.

Famous energy drink maker Monster Beverage could not meet the increased demand for their product because of aluminum can shortages. Meanwhile, the surge in Europe’s gas prices has pushed some producers to curtail production, which has led to a shrinking global inventory of aluminum products for the construction industry and beverage makers.

Plastics

Plastic resins, the raw material used to make plastic packaging and paints, have had supply issues. The prices increased by over 50 percent in 2021 due to ice storms and hurricanes that affected the chemical supply chain.

Though manufacturers resorted to stockpiling plastics to ease the strain on their supply, the growing demand and import taxes has led to market volatility. A Bloomberg report showed that a plastics shortage would restrict medical device supply.

Building materials

The surge in demand from new homeowners embarking on construction projects after a pandemic is affecting the building materials supply. Also, home improvement projects that took shape amidst the global lockdown have added more pressure to the complicated construction supply chain.

High materials costs and a lack of supply are lengthening the lead times of construction projects and pushing contractors to use alternate materials. The lack of workforce affects the supply chain from building materials producers to final consumers.

These shortages directly result from the pandemic and ongoing Ukrainian war straining the global supply chain for these products.

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