COLORADO SPRINGS, Colo. (KKTV) – Emily Ross owns downtown Colorado Springs boutique, Yobel. She says, she ordered shirts for her shop recently from overseas, only to have them delivered twice in an unusable state.
“We actually went through a couple rounds of some men’s shirts that came to us with mold on them, like mildew spots. They were probably sitting on a container somewhere for a long time,” Ross said.
This is just one example of supply chain problems hitting business owners. Wells Fargo economist Mark Vitner told KKTV, more than 75% of U.S. businesses are feeling the impact, from big box stores to small shops. He says, production holds ups have been happening both in the U.S. and overseas because of companies shutting down or socially distancing employees during COVID-19 outbreaks and for precautionary measures. That, combined with a national truck driver shortage, is creating a perfect storm.
Ross said, she’s encountered this with some of her manufacturers. She carries the popular shoe brand, Toms. She says, “they fit our model of fair trade and ethical fashion, but they are completely shut down in one of their biggest areas of manufacturing in Vietnam because of Covid.”
Ross says, over the past few months, placing orders and counting on them to arrive has been more challenging than normal. She says many deliveries take unusually long to arrive, and some packages have gone missing. She says, that’s created a headache when it comes to managing her books.
“On the monetary side of that, if we start to pay for things we don’t have, that overhead is hard especially for a small business owner. Every business would probably say every penny counts, but I think the small business owners feel it a little heavier.”
From an economist perspective, Vitner agrees, and says Ross’ situation is not unlike that of small business owners across the U.S. this fall, as they prepare for their biggest money making season: The holidays. “There are problems everywhere, but national chains have been able to deal with it better than small businesses, because [national chains] typically have a lot of expertise in logistics. That doesn’t mean that they’re able to handle every shortage they have, but they typically are in a better position to find alternative suppliers. Small businesses may not know they have a problem until they actually have the problem. Its hard for them to stay ahead of it. They don’t know that they’re not going to get something until it hasn’t shown up for a while, and they don’t have as much leverage when dealing with suppliers.”
Emily Ross said, despite the “headache” of supply challenges, she’s optimistic and wants to encourage people to shop local for the holidays. She recently shifted to running her business full time, ending a 16 year corporate career. “Our big Christmas season, Small Business Saturday, will be at the end of the month and that’s when things really kick in gear. Fingers are still crossed for a few of those big packages to still come in by then.
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