There is a shortage of microchips in the supply chain. This shortage has impacted the car manufacturing amid a growing demand for new cars. A price of a new car is up by 10% this year, nearly averaging $40,000 compared to the past two years. Experts say that auto manufacturers forecast a drop in demand for new cars cancelling orders for semiconductors. Consequently, automakers rushed to push orders of new microchips to companies behind a long line of other companies demanding the same.
The Ford Motors said until June, it is expected to produce only half the number of vehicles it generally produces. Other car makers such as GM, Volkswagen and Jaguar Land Rover had to suspend its production because of microchip shortage.
Americans who are looking to buy new cars to take a trip long due will have to buy a used vehicle because there is a shortage of new cars on the market. In April, the asking price for a used car is well over $25,000, $3,000 more than a used car for sell at the same time last year. Rental car companies such as Hertz and Enterprise have resorted to buy used cars due to short supply.
Sawmill companies are also struggling to meet demands as potential homebuyers who is looking to capitalize on low mortgage rates. With more time on hand, homeowners are investing in new renovations, causing surprising boom in the lumber industry. For example, sawmills are experience a record profits this year with demand for lumber four times its usual record.
In restaurant industry, many owners are experiencing surge in high price of chicken as more and more Americans are eating out and fast food companies are competing to for a share of profit by adding the now popular chicken sandwich. Dave Gibbs, CEO of KFC parent company of Yum Brands speaks about KFC’s new brand of Chicken sandwiches which was released in January, “Demands for the new chicken sandwich is so strong that, coupled with tightening of domestic chicken supply, our main challenge is keeping up with that brand,” he said.
The release of the KFC sandwich aimed to compete with other fast-food companies such as Popeyes and Chick-O-Filet which established a strong competitor in the industry. Another compliment for food is ketchup. It is reported a shortage supply of ketchup packages in restaurants for customers. The leading maker, Kraft Heinz Ketchup says customers don’t have to worry, the supply will become stabilized in the next few weeks.