Business
Supply chain woes hit small businesses
Supply chain issues have caused problems for companies big and small. This October, at least 60 cargo ships idled off the California coast, waiting for berths to open up so they could drop off cargo. Costs to ship a single cargo container from China to the west coast of the U.S. rose from $3,000 to $20,000.
A National Federation of Independent Business survey in September found that 55 percent of small businesses reported that supply chain issues were worsening.
A Congressional report concluded that COVID-19 lockdowns caused many of the initial problems.
The U.S. Census Bureau’s Small Business Pulse Survey found 45 percent of businesses reported delays from domestic suppliers and nearly 20 percent reported delays from foreign suppliers.
Ultimately, supply and product woes will likely impact the bottom line. Small businesses, already facing tight profit margins and rising overhead from labor and other expenses, may struggle to absorb the additional costs.
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