Inflation & Manufacturing - Allis Roller Blog 2021 Economic News

• Nov 16, 2021
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Current State of Economy

Inflation is on the rise. While economists debate whether the current situation will be temporary or long lasting, manufacturing companies can’t afford to be caught off guard. High inflation can dramatically reduce profits and harm your business. In times like these, preparation is the name of the game.

According to minutes from the Federal Reserve’s April 2021 meeting, the Fed expects inflation to remain slightly above 2% this year before returning to its long-run target of 2% by 2023. But other economists say the inflation rate could go much higher and be longer lasting than the Fed predicts.

With prices for things like lumber, steel, copper, chemicals, semiconductors and other commodities rising, many manufacturers are already dealing with inflated prices for raw materials. 

Holiday Price Increases

“According to a Salesforce study on consumer insights and predictions for the 2021 holiday season, digital sales will soar to $1 trillion globally amid a 20% rise in costs for consumers. Supply chain restrictions and labor shortages are the culprits.

According to a release, Salesforce predicts a 7% YoY overall growth in global digital commerce for November and December –down from 50% YoY growth in 2020– and a 10% growth in the U.S. specifically, down from 43% YoY last year.

Further, “Total digital sales are expected to reach a record high of $1.2 trillion globally and $259 billion in the U.S.,” while “Digital commerce growth will be driven by a 20% rise in consumer prices despite fewer global (-2%) and U.S. (-4%) holiday orders expected.”

Further, “Total digital sales are expected to reach a record high of $1.2 trillion globally and $259 billion in the U.S.,” while “Digital commerce growth will be driven by a 20% rise in consumer prices despite fewer global (-2%) and U.S. (-4%) holiday orders expected.”

While inflation is going to be a problem for the foreseeable future, it is important to partner with a company like Allis Roller which is transparent and honest about our pricing as well as project terms. Find out more about us on the rest of our site.