Warning! Massive Shortages Are Coming

out of stock in low supply sold out shortages get used to seeing the terms all over this year and next as a just-in-time manufacturing and distribution system continues to sputter several factors in 2020 in 2021 have caused shortages ranging from the absurd and humorous to the critical and deadly of course not having chicken nuggets or ketchup packets is just a slight inconvenience however it will hit you a little closer to home when manufacturers can't get the wrong materials they need then prices will inevitably continue to go up and you'll pay more for the products you need when life-saving medicines are in short supply they may not be available to you and yours when you are sick or injured what is going on with these shortages and will it continue how much worse can it get in this video i'll examine why shortages are occurring many of the shortages we are currently experiencing possible future shortages and what you should do to prepare and brace yourself to insulate yourself from the effects of short supplies please consider subscribing to our newsletter by clicking on the link in the description and comment section below if you enjoy this video please subscribe and click the like button to help the channel grow what's happening years ago when you wanted a product or good you had to place an order and weight if it was a popular product on a store shelf in a back warehouse or off site at a holding warehouse you could receive the product in a short amount of time if it wasn't in stock somewhere an order was placed with a manufacturer and you could wait and wait and wait until it was finally manufactured because enough other orders were placed to warrant that manufacturer to gather the necessary raw materials and fire up his machines it was a much different world just a decade or two ago in recent years however manufacturing moved to countries that could pay less and generate products faster and cheaper delivery systems became more efficient computerization eliminate the need for paper orders to be delivered or transcribed over the phone globalization built up an extremely effective and efficient ordering and delivery system as a result on hand inventory shrunk and savings could be realized by not storing large quantities of products on the shelf in economic terms supply ramped up slowly to meet demand when the product was no longer in demand manufacturers retooled their factories for a product that was in higher demand raw material of producers manufacturers distributors and cells all finely tuned their processes to have as little overhead and product and as much profit as possible when the system is working great it's paradise imagine you're in a sports stadium with 50 000 other fans there's enough beer nachos hot dogs and other foods to go around the sports venues food services have looked at what they typically sell and the maximum capacity of the stadium and cipher out from that amount of product they were likely to sell they then gamble on their accuracy by ordering just that amount of product let's say hot dogs in this case if the demand is suddenly higher than average for hot dogs they run out seizing the opportunity presented by short supply an independent hot dog vendor might raise his prices because the demand is high when they're gone they're gone if you really crave a hot dog you have to pay up the basic laws of supply and demand still work in the just-in-time systems of today but they are far more volatile supplies become more efficient and way thinner it is now one delivery per month instead of 10 perhaps it is one factory manufacturing a given product instead of five factories around the world needed to supply the region of the globe it's now one refiner instead of six we can see the proof that the system is acceptable to wider swings and greater volatility today in both significant and seemingly inconsequential shortages no shortage of shortages there are a few shortages i will refer to here as odd because we probably didn't see it coming and they don't impact our lives all that greatly so we tend to shrug them off scratch our heads and move on with our lives i won't go too in depth into these as they are not as critical still it's worth understanding the whats and the whys to understand better the system's fragility and its acceptability to collapse some of the reasons for some shortages are obvious some not so obvious any way you look at it though the fact that we are experiencing more shortages and a higher frequency of shortages is undeniable here are some of the notable shortages last year this year and on the horizon surgical mask obviously with code 19 one of the first shortages to be realized and addressed was personal protection equipment or ppe in the early days of covet around march of 2020 we were only beginning to understand how sars kovi 2 was spread once a need for ppe was realized and the virus rose from a few cases in other countries to a global pandemic the supply ppe went from just enough to woefully insufficient manufacturers worldwide were tapped to increase supply this is an example of sudden demand outpacing inventory coins as businesses shifted their models to more electronic and paperless transactions in-person transactions decreased during lockdowns people saved money and spent less fearing a more significant economic decline in the actual supply of cornish decrease there is an adequate supply of coins in the economy but the slowed pace of circulation has resulted in reduced quantities where they are needed the mint only adds about 17 percent of new coins to the market most of the coins are recycled from retail transactions and recirculated the impact of cover 19 resulted in the disruption of the supply chains and circulating supplies of pennies nickels dimes and quarters this is an example of how close to the bone supply and distribution models have gotten in the name of greater efficiency ketchup packets ketchup packets seem like an odd shortage until you contemplate the reasons typically a percentage of people went through the drive through and the rest dined in the restaurant when takeout and drive-through were the only options because it covered restrictions the supply of ketchup packet tripled up as neat's forced demand went down toilet paper the great toilet paper shortages of 2020 were primarily from people panicking and buying all the available supplies somewhere someone is sitting on a lifetime supply 2021 however brought some new hiccups the behemoth evergreen shipping container and the flotilla of backed up cargo ships trying to transit the suez canal also blocked up the wood pulp cargo on its way to paper manufacturers significant disruptions to the pulp tray could impact toilet paper supplies if producers don't have sufficient inventories brazil accounts for about one third of all the global supply of hardwood pulp toilet paper is typically made to order because it takes so much room storing large quantities is not profitable so the industry typically has only a few months of inventory on hand the vast majority of toilet paper consumed by americans is made in north america but about 10 of the giant rolls of paper are used to make the rolls that end up in american bathrooms come from china and india so while tp isn't yet in short supply the perception that it could be coupled with some supply chain problems could result dramatic price increase in scarcity you might not want to get rid of your lifetime supply of tp just yet microchips as kids went to school online and talked to their parents into buying them the ps5 and parents started working from home during the pandemic the demand for semiconductors and personal computers and electronics skyrocketed demand for electronics shifting business models including outsourcing production and effects from a trade war resulted in chips being in short supply while demand remains high manufacturers have had a slow production and this ship shortage affects everything from your laptop to mobile phones to appliances to the car you want to buy expect demand and prices remain high while supply and production output remains low this is an example of economies shifting priorities lumber coveted snarl supply chains in greater demand from consumers have resulted in low inventories and astronomical prices for lumber the cost of plywood is up an incredible 250 percent in just a year and the kink in the system doesn't look to be resolving itself anytime soon when a sheet of plywood hovers at a cost just below 100 the cost of construction and housing go up to balance out the equation those costs of course get passed on to you the consumer bicycles early in the pandemic people found themselves without a gym and spending more time at home they dusted off old bicycles or purchased new ones to not lose their mines indoors from cabin fever the supply quickly disappeared and new bikes soared in price over 120 percent bicycle repair shops servicing old bikes experience a backlog of repairs the supply disruption still has it found in equilibrium aluminum cans and glass jars as beverage consumption moved away from restaurant kegs and fountain drinks to home consumption the current supplies of canned goods quickly shrink raw materials in transit have also slowed though production has ramped up also the number of people cooking and trying recipes during the pandemic has increased and led to a surge in canning jar sales went up 600 percent and supplies disappeared here two manufacturing had to shift priorities and ramp up production at a time when the shipment of raw materials was also challenging a seemingly insignificant consequence of the shortage was that burger king had to delay the rollout of one of its sandwiches because they couldn't get the jars for the pickles they needed for the sandwich no big deal right i pointed out here though because i think it's essential to understand how one shortage can ripple out across an economy and affect multiple other products shipping containers products are shipped from manufacturers to distributors and shipping containers ninety percent of goods worldwide are shipped in those big metal boxes on cargo ships trains and trucks that's great but what about that shipping container the big steel wrapper all that product arrived at your country inside of somehow that has to get back to the manufacturing country to be reused still it isn't very profitable to ship empty containers there aren't many products going the other direction when the evergreen container ship was stuck in the suez canal manufacturers in many countries had a hot production because they didn't have containers in which to ship their products chicken wings and nuggets americans turned to comfort food to stave off the big bummer of being locked down this brought americans cold storage stock of chicken wings to its lowest point in over a decade chicken nuggets are mainly made in china the flow of meat from that country hasn't exactly been smooth sailing a continuing trade war is compounded this the whole meat distribution system is truly a little odd we may produce a meat in the united states ship it to china for processing then back to the consumers here that's far from the farm to table model you can see this problem when you pick up meat from your grocery store meat department have you noticed a label that says your steak was processed either in canada mexico or in the united states to me that's rather scary when they can't tell you the source of one steak critical shortages while many of the other shortages we can work around some may dramatically affect us from higher prices to critical needs the disruption of raw materials like aluminum glass wood pulp and rare materials will cause disruptions in the manufacturing and inventories of cars boats planes computers smartphones appliances small electronics and so much more when supply is sparse prices go up economies already struggling to regain their footing after a dramatic downturn in 2020 will experience an even more significant slowdown as consumers clutch their purses and hope for certainty to be restored in prices to drop scary's potential shortage on the horizon is medicine though many manufacturers have heavily retooled r d and the production to accommodate millions upon millions of doses of covet vaccine to do this they have pulled resources but people in the means of production from other areas add to this that 80 percent of the world's apis or active pharmaceutical ingredients come from china there is another layer to the potential problem apis are the raw material for drugs the raw ingredients in their purest form the majority of these apis are sent to india that country manufactures almost 50 of america's generic drugs if you've been following the news in india lately there are reportedly nearly 300 000 new cases of covet per day yes that's per day new cases at least one strain is shown to have two significant mutations india has almost 18 percent of the world's population a staggering 1.37 billion people if the medical crisis in that country continues borders will close manufacturing will slow or stop and overnight 50 of america's generic drug supply will cease to flow a generic drug is a medication created to be the same as an already marketed brand name drug and dosage form safety strength route of administration quality performance characteristics and intended use it's not just ibuprofen or athlete's foot cream generic drugs are most of the products you see at your drugstore both over the counter behind the counter almost 50 of all americans used at least one prescription drug in the last 30 days and nearly 100 percent use an over-the-counter medicine or topical medication during that same period almost 7 in 10 americans take prescription medications if you do you have probably already seen the price rise brace yourself because the cost could get much higher much higher as problems persist all the way through the raw material manufacturing and distribution supply lines so critical shortages might not just be a headache from the high prices for everything they may result in a shortage of the medicine you need to relieve the headache what can you do now if you're going to purchase electronic equipment appliances a car or house you might want to do that sooner than later prices will go up considerably if supply continues to remain low and distribution continues to be hampered also take a look at any critical prescribed medications or over-the-counter medicines that you take press your doctor for a back-up supply of prescription medications given the global uncertainty and growing problems go through your prepping supplies and make sure all your meds are up to date and well stocked the medicine crisis is still in its infancy but it could easily be the most significant global shortage of this year next it could be substantial enough to make the history books if you do have the ability and environment you may want to also research and explore herbal remedies while these may not be as effective as manufactured drugs because of the potency nature has provided a cornucopia of natural remedies that grow all around us in a grid-down situation you will be glad you know a few treatments for common elements that don't require manufactured medicines finally with each shortage you hear take the time to determine what other effects it will have on other systems products and services stay ahead of the shortages and make sure your prepping inventory has what it needs to get you through any short-term disruptions the shortages we face now and in the immediate future are compounded exponentially by inflation in the shrinking dollar you'll want to see my other videos and blogs on that if you take anything away from this let it be that shortages are occurring with greater frequency but your takeaway be the understanding that some of the critical areas of the world where we derive our raw materials in generic manufacturing continue to have troubles in their future let your takeaway be the understanding that something as seemingly insignificant as a stuck ship can have immediate and lasting disastrous effects on global production distribution let your takeaway be the realization that you would be prudent to stay ahead of shortages and understand both their compounding and rippling effects what do you think i can't cover all the shortages in just one video have you realized a shortage of something recently what do you think will be the next shortage tell us in the comments section below read me the comments and respond to them as i'm able to and that's typically within the first hour of releasing the video if you found this video informative and helpful please click that thumbs up icon it's a little thing but it helps us build our prepping community i can notify you when other videos become available if you've subscribed to the channel as always please stay safe out there [Music] you

Channel: City Prepping

Views: 662,697

Rating: 4.8847103 out of 5

Keywords: shortages, supply shortages, supply vs demand, inflation, hyperinflation, prepper, preppers, doomsday preppers, emergency preparedness

Id: CkXQLJjknYM

Length: 16min 30sec (990 seconds)

Published: Sat Apr 24 2021