[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”rgba(0,0,0,0.29)” global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.16″ title_font=”|700||on|||||” title_text_color=”#FFFFFF” title_font_size=”30px” background_color=”rgba(0,0,0,0.56)” text_orientation=”center” custom_padding=”15%||15%” text_shadow_style=”preset2″ parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0|0px|18.95px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n
Walk into almost any retail store, essential or not, since\u00a0<\/span>the start of\u00a0<\/span>2020 and one of the first things you notice is empty shelves. The reason is obvious: the world became overly dependent on manufacturing from China to\u00a0<\/span>fill those shelves. That\u2019s why having a diversified supply chain with products coming from different parts of the world is so important to businesses today.<\/span>\u00a0<\/span><\/p>\n The coronavirus pandemic isn\u2019t solely to blame for those empty shelves. Domestic retailers have been experiencing \u201couts\u201d since the United States and China\u00a0<\/span>entered\u00a0<\/span>a trade war\u00a0<\/span>in 2018\u00a0<\/span>long before the world had ever heard of COVID-19. Shortages have ranged from hosiery to heavy equipment because the bulk of world manufacturing has been used\u00a0<\/span>as<\/span>\u00a0an international poker chip and American retailers have been rolling snake eyes. And the worldwide pandemic, which shut down Chinese manufacturing\u00a0<\/span>and eventually global retail\u00a0<\/span>at the start of 2020 raised the stakes<\/span>\u00a0in demonstrating\u00a0<\/span>how dangerous it is to rely so heavily on so few suppliers.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”The Real Retail Apocalypse” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n The Retail Apocalypse, which\u00a0<\/span>e-commerce\u00a0<\/span>companies began over a decade ago,\u00a0<\/span>pales in comparison to\u00a0<\/span>the damage done over\u00a0<\/span>a few months as the world\u2019s manufacturers shut down due to\u00a0<\/span>the novel coronavirus.\u00a0<\/span>E-commerce, while still growing steadily, still accounts for\u00a0<\/span>only about\u00a0<\/span>10% of total retail sales in the United States<\/a><\/span>.\u00a0<\/span>In 2018,\u00a0<\/span>U.S. imports from China totaled $539.5 billion<\/a><\/span>,\u00a0<\/span>an increase of 59.7% over\u00a0<\/span>1<\/span>0<\/span>\u00a0<\/span>year<\/span>s<\/span>\u00a0and\u00a0<\/span>an increase\u00a0<\/span>o<\/span>f 427% since 2001.<\/span>\u00a0<\/span><\/p>\n The top items imported range from electrical machinery ($152 billion in 2018)\u00a0<\/span>to toys and sporting goods ($27 billion).<\/span>\u00a0So, when\u00a0<\/span>China closed\u00a0<\/span>Wuhan<\/span>\u2019s manufacturing plants to protect workers from the rapidly spreading virus, it hit\u00a0<\/span>almost everybody worldwide, no matter what their interests<\/span>\u00a0and it hit retailers hardest.<\/span>\u00a0<\/span><\/p>\n According to a recent\u00a0<\/span>survey of global supply chain leaders<\/span>, the research firm Gartner found that a third<\/span>\u00a0of the\u00a0<\/span>global\u00a0<\/span>supply chains\u00a0<\/span>had already moved\u00a0<\/span>manufacturing or sourcing out of China or planned to do so over the next three years.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Closer to Home” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Even though t<\/span>he\u00a0<\/span>global\u00a0<\/span>supply chain\u00a0<\/span>ultimately affects the ability of American retailers to stock their shelves and make sales to\u00a0<\/span>hungry shoppers<\/span>, it meant little to businesses forced to close\u00a0<\/span>during the coronavirus outbreak. However, businesses deemed essential by fe<\/span>deral and state governments were forced to grapple with\u00a0<\/span>shortages or items that were just not available.\u00a0<\/span>And they had to do it as their business spiked.\u00a0<\/span>Toilet paper,\u00a0<\/span>isopropyl alcohol, hand sanitizer and other cleaning supplies were\u00a0<\/span>some of the most common items\u00a0<\/span>grabbed up by hoarding consumers<\/span>.<\/span>\u00a0<\/span><\/p>\n As most businesses locked their doors, h<\/span>ardware stores<\/span>, grocery stores, pharmacies and other businesses\u00a0<\/span>boomed even though their suppliers couldn\u2019t fulfill their orders.<\/span>\u00a0<\/span>Hardware Retailing<\/i><\/a><\/span>\u00a0reports that n<\/span>early 72% of retailers in the hardware industry said their sales\u00a0<\/span>rose compared to the same period in 2019<\/span>. However, 90% of those same retailers said their\u00a0<\/span>supply chain failed in many areas during the outbreak.<\/span>\u00a0<\/span><\/p>\nThe Real Retail Apoc<\/span><\/span>alypse<\/span><\/span>\u00a0<\/span> <\/span>
<\/span><\/h2>\n<\/span> Closer to Home<\/span><\/span>\u00a0<\/span><\/span><\/span>\u00a0<\/span>
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