The good news for the global sourcing world in Q4 is that economies have mostly opened as vaccination levels increase and people are back on the job. On the flip side, supply chain delays and material shortages continue to hold back production and delay order delivery, while shipping costs are driving consumer prices higher.
Below are some highlights from the Q4 Retail Sourcing Report.
- Economic growth is back on track, but inflation has increased raising the likelihood of interest rate hikes in the US and Europe
- While shipping costs have fallen off recent highs, capacity shortages and delays are still impeding production and order delivery.
- Many companies, especially in low-wage-dependent sectors such as apparel, are shifting production closer to home and elsewhere.
The climate for global sourcing heading into 2022 is optimistic with the expectation that consumers will maintain spending and supply chains should stabilize. Inflation is a concern though, especially as government stimulus winds down.
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The Sourcing Report aims to keep you ahead of the curve by providing facts, insight and analysis on issues impacting retail global sourcing.