The constant global supply chain trouble has left an impressionable impact on every part of our lives, with skyrocketing market demand and a severe shortage in supply, leading to significant hikes in product costs.
Throughout 2021, the demand for consumer-end products, raw materials & electronic components have left store shelves empty, seaports’ cargo yards flooded with shipping containers & storage facilities overflowing with delayed packages, citing fears over further surges in prices throughout the year ahead.
Semiconductors are fundamental electronic components of various products across nearly every industry, including automotive, consumer electronics, home appliances and more. With the vast majority of semiconductors manufactured in Asia, with two suppliers accounting for nearly 70 per cent of the global supply, the end products are witnessing an unavoidable price surge in 2022.
Expenses of smartphones, computers, home appliances and other consumer electronics are estimated to increase by seven per cent to eight per cent. As inflation beats an all-time high, food manufacturers are preparing to increase prices across a wide range of products in the year ahead, including meats, poultry, fish and eggs. Critics evaluate a five per cent surge in food prices in the first half of 2022, to meet the growth in labor, packaging, shipping and logistics costs.
IKEA has announced a 9 per cent increase in furniture prices due to the ongoing supply and transportation disruptions.
Ikea’s stores stated in a statement that “Like many other industries, IKEA continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future" Furniture prices are estimated to spike well beyond 10 per cent, due to the global shortage in shipping containers and the skyrocketing sea shipping fees.