TAMPA, Fla. - Supply chain issues are causing products to be more expensive, sold in smaller quantities at the same or higher price, and are making some things hard to find.
"Probably one of the most significant is, you may not be able to get your choice of car model right now. We’ve had a semiconductor shortage that has delayed the production of the motor vehicles, as well as a lot of different appliances and things," said Scott Brown, chief economist for Raymond James.
Brown says the supply chain issues are impacting industries across the board and it is hitting consumers harder than normal.
"You normally do see these supply chain issues in any economic recovery, it typically takes the economy a little bit of time to restart, but these supply chain issues have been a lot more intense and have really lasted a lot longer," Brown said.
Economists say it’s because of the pandemic. It disrupted the supply chain at ports in Asia and at the Port of Los Angeles.
FILE - A US flag flies near containers stacked high on a cargo ship at the Port of Los Angeles on Sept. 28, 2021 in Los Angeles, Calif.
In addition, employers are finding it difficult to hire workers. The job market has a record-high quit rate, according to Brown.
"What we find is it’s very easy to lay people off, but it’s very difficult for firms to go out and hire people, especially if every other firm is trying to hire people. It’s why we’re seeing all of these job openings even though you still have so many people who are unemployed," said Brown.
President Biden announced Wednesday that the Port of Los Angeles will become a 24/7 operation to help reduce the bottleneck of ships. Economists say that will help, but there is no quick solution.
Brown says it will take several months for the supply chain to improve, predicting it to normalize in the spring.