Material shortages due to the pandemic hit area businesses hard in 2021.
Local manufacturers struggled to fill orders because of supply chain issues with raw materials.
“We are speaking to a lot of businesses that have supply chain issues, not able to get all the parts and raw materials,” said Jack Lank, president and CEO of the United Regional Chamber of Commerce. “Many have told us that they have large numbers of back orders because they can’t produce the products because of lack of materials and supplies.”
The chamber, based in Plainville, covers area communities including Attleboro, North Attleboro and Foxboro.
“The big issue with the raw materials is the huge price increases because of the high demand and low supplies,” Lank said.
With the economy picking up steam, demand for goods is also on the rise, exacerbating the problems.
The raw material shortages have been caused by everything from worker illnesses to shipment delays around the world, which can be traced to the pandemic.
“A good portion of the raw materials and supplies they need are sitting in storage containers in the ships that are unable to get unloaded in many of the ports because of lack of dock workers to unload the ships,” Lank said.
Labor shortages due to rising cases of new strains of the coronavirus in the U.S. and other countries are also continuing to depress manufacturing activity, economists say.
Raw material shortages include basic items such as metals and microchips.
Computer chips that are now common in vehicles require a lot of copper, which is in high demand and costlier.
The computer chip shortage, which stretches back to last year, impacted the holiday shopping season and could linger for a few years, analysts say.
Besides worldwide supply chain disruptions, their scarcity is being attributed to COVID-19 lockdowns and an unstable relationship between China and the U.S.
The shortage has affected more than 170 industries because semiconductors and computer chips are integral to modern technology and are included in many of the electronics and appliances used daily.
Sparsely-filled store shelves have been a common sight for area residents. At times, the racks for bicycles have been empty in stores.
