Supply Chain Disruptions and How to Combat Them

Cover-Picture_DisruptionsIt's no secret the US supply chain, indeed the global supply chain, has been massively disrupted due to a variety of conditions related to COVID, e.g. lock downs, voluntary but temporary shuttering of businesses, workers staying home or being forced to home source, etc. Inventory shortages, higher prices and longer production and fulfillment times have been the natural consequence. All these factors have prompted many in the promotional products and custom clothing industries to call for an increase in manufacturing here in the United States.

Omaha Promos applauds any effort to increase sourcing and manufacturing at home, but despite our continued emphasis on "supporting local" (as in, supporting Made-in-America however we can), the reality is many experts in the promotional items and custom apparel space believe a large segment of the market will remain reliant on overseas manufacturers. Here's why, and what you can do about it.

China is obviously right in the middle of this conversation because over the last several decades consumers have come to realize it's cheaper to produce abroad, and if anything this is more the case today than ever. "When I graduated from West Point in 1993, more than half of the apparel in the US was made in the US," says Dean Wegner, founder and CEO of a veteran-owned business that specializes in US-made apparel production in the promotional marketing space. "Today it's tragically less than 3%, as apparel production has moved overseas to chase cheap labor and higher profits."

Sadly, it's going to be hard to turn this ship around. Why? There simply isn't enough production capacity in the US to support a significant increase. It should also be noted, as honorable as seeking Made-in-America whenever you can, American manufacturers often rely on "inputs" from overseas, such as raw materials and components, and of course those raw goods are also being impacted by rising costs, shipping delays and other global supply chain problems (not the least of which include COVID rearing its ugly head again in China and southeast Asia, causing economies to cut back as lock downs and other measures meant to control the virus are enacted by the local governments).

The good news is, demand for Made-in-America promo items remains high and offerings in certain categories such as edible gifts, custom bag and custom tote production, and some health and beauty products such as lip balms and hand sanitizer are in fact increasing in the US, so companies and non-profits looking to put their logo on a trade show leave-behind gift or customer appreciation gift can take solace in knowing there are some US made options out there depending on what you're looking for.

In an ideal world, all of America's goods and services would be sourced right here in America, but that's not realistic given the nature of the global economy. Omaha Promos will continue to seek the best combination of price, style, color selection and quality in our all lines including promo items, green promotions, employee recognition gifts, trade show items, golf tournament and scramble gifts, and our impressive lineup of custom clothing and uniforms. We source from thousands and thousands of manufacturers both here on native soil and aboard, and we will work with you, our valued friends and customers, to fulfill your orders to your complete and utter satisfaction.

The best piece of advice we can provide our clients right now is, PLAN AHEAD! Supply chain woes, both foreign and domestic, are likely to remain part of the business world for the foreseeable future, so the best way to combat delays in production and delivery times as well as to insulate yourself from surging prices in this economy is t0 PLAN AHEAD!

Make it a great day everyone, and please know how much Omaha Promos appreciates your business!

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