February 02, 2022
It seems that businesses ordered more goods than they can sell. (Seriously, this is what the piece says.) In the old days, we might have thought that too many goods, with too few buyers, might have meant lower prices. But Marketplace tells us that businesses don’t want to take losses with big price cuts, so they will just store the stuff in warehouses.
Unfortunately, there is a shortage of warehouse space (even with the supply chain problems), so the price of storage is skyrocketing. So, the net effect is further cost pressure, along with higher labor costs.
The bad news just keeps coming.