SIOUX CITY, Iowa (KCAU) — With struggle comes recovery. That’s what Associate Professor of Economics Kathryn Birkeland said our country is going through right now as we try to overcome problems in the consumer world brought on by the pandemic.
The recent spike in supply shortages is overwhelming some Siouxland businesses.
“The dealers aren’t able to get inventory from the manufacturers, cause the manufacturers aren’t able to get all the parts for the cars, so if you look at the lots in Sioux City, almost all of the dealers are short on inventory, which is driving the price of used vehicles up a lot,” said Craig McReynolds, the Operations Managers at Tires, Tires, Tires.
Even local coffee shops are having trouble getting the basics.
“We’re seeing really odd shortages, even down to like, plastic straws, lids, cups. Coffee beans have been pretty good but even recently, we’ve been having trouble getting coffee beans,” said Brad Lepper, co-founder of Stone Bru.
“When you see an increase in the demand, and the supply hasn’t caught up yet, that extra demand we call is a shortage, eventually those prices will rise to get rid of the shortage, that’s what’s supposed to happen,” said Birkeland.
Other operations, like lumber companies, are also having problems keeping up with customers needs. But as the demand increases, usually, so do the price, which has some experts worried about inflation.
Inflations is roughly at 4 percent right now, Birkeland said that’s not unusual, for a country in an economic recovery.
“It’s definitely something to pay attention to, and you can’t deny, when you’re in a grocery store, and it’s a lot more than you’ve been spending previously,” said Birkeland.
Area business owners are learning to roll with the punches while still serving their customers.
“We as a company have way more inventory than we do to try to beat price increases and serve our customers best,” said McReynolds.
Birkelind compared what we’re experiencing now and back in the 70’s; when the focus was on fixing unemployment issues, and not focusing so much on inflation. She said that wont be the case this time around as officials vow to care about both as we work to recover.