setting low expectations (of supply chains)

View this email in your browser
This edition leans...
Hey Below the Fold fam,

We’re all experiencing the burden of rising costs for, well, everything. As we dug into today’s story on worsening inflation, we couldn’t help but pause at one of the examples given: The struggle to manufacture rubik’s cubes because of the little metals used inside them increasing in cost by 50%.

While we understand all businesses need help surviving, with global shortages for chicken, blueberries, and cars… it’s hard thinking about the priority non-essential items are given 😆. Our judgement aside, let’s dig in.
The global supply shortage is here to stay
Thu Aug 26

Economies worldwide are experiencing the highest inflation seen in over a decade. And now, new reports show these record rates will continue into 2022 with the U.S. alone expecting inflation to double by the end of this year. Why?

The biggest factor at play is the global supply chain crunch that just keeps getting worse for a number of reasons.
  • Ports are congested, which one Taiwanese marine executive believes will become the new normal unless the pandemic can be contained. In fact, a record 44 container ships are stuck near California at the main U.S. trade port for goods from China.
  • Shipping costs are also 10 times higher for a number of these global routes. One Chinese warehouse says their clients have cut 60-70% of shipments due to costs, including an American client who has over 70 containers of ready-to-ship goods collecting dust.
  • And raw materials shortages are feeding into the problem, forcing suppliers to source and assemble across much greater distances while wasting money simply moving around parts.
Another major contributor is labor shortages — and not just in America. At a time when demand for Chinese goods is at an all-time high, China is seeing younger workers flock to service jobs that pay better and demand less. The country’s former one-child policy has also shrunk the labor pool, making it harder for the country to produce the cheap goods it's known for. And as costly raw materials have already increased product prices 10-15%, prices are expected to increase even more in light of these labor shortages.

To keep up with demand, some are taking drastic measures.
  • Workers in Vietnam are sleeping on factory floors to keep exports moving (the country is the world’s second largest producer of footwear and clothing). Some reports show these factory sleepovers also help protect workers from COVID outbreaks.
  • Toyota is suspending output at 14 of its plants in Japan, slashing production by 40% as supply disruptions (like chip shortages) continue.

🎬 Take Action

When supply for goods decreases, it’s tempting to go buy all you can find — but hoarding can have a negative communal impact. Consider cautious spending for just what you need.
Post Post
Tweet Tweet
Share Share



(Where we found this story)
1 week old | 9 minutes long
Vietnam factory sleepovers
1 month old | 8 minutes long
Wall Street Journal:
Labor pains for Chinese factories
1 month old | 11 minutes long
Wall Street Journal:
China raises prices for the world

5 months old | 10 minutes long
Business Insider:
Ships stuck at California port

3 days old | 4 minutes long
Global chip shortage
3 weeks old | 2 minutes long



  • Yesterday: The fungi-est thing about grapes
  • Thursday: The world’s largest bitcoin producer banned bitcoin
  • Friday: Denver plans on keeping special education segregated
Having a tough time with your digital spending habits? You’re not alone. Online spending has been surging during the pandemic, making it almost habitual for some. Fortunately, that’s why Pause exists.

The Pause browser extension literally helps you press “pause” as you shop online by blocking popular sites such as Amazon, Walmart, or Etsy for just 30 seconds. That way, you can really process if you want to or should be shopping before continuing on.

Stop being tricked by big tech today, and use Pause to start spending less money on over 200 websites. Available now on Chrome, Firefox, and Safari.
>> Download Pause
    |>    |>    |>
    ||    ||    ||
  |                   /
  |   S.S. SUP-BYE   /
   | o  o  o  o  o |
Why are we sitting here idle with 100s of containers??
Ship happens.

Art Credit: ASCII.CO.UK
Copyright © 2021 Below the Fold, All rights reserved.
You are receiving this email because you opted in via our website.

Our mailing address is:
Below the Fold
2261 Market St # 4135
San Francisco, CA 94114-1612

Add us to your address book

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Older messages

heard on the grapevine…

Thursday, September 2, 2021

Facial recognition technology could save millions $ View this email in your browser WELLNESS CHECK This edition leans... Hey Below the Fold fam, Facial recognition has almost become a dirty word these

the great mining migration

Wednesday, September 1, 2021

China's goodbye to crypto has the West wooing miners. View this email in your browser WELLNESS CHECK This edition leans... Hey Below the Fold fam, Earlier this year, we discovered how bitcoin

Back to school — but yours or mine?

Tuesday, August 31, 2021

The debate over segregation of special education... View this email in your browser WELLNESS CHECK This edition leans... Hey Below the Fold fam, We recently learned about the treasure trove of research

controversy continues in LA

Monday, August 30, 2021

Here's the city's latest approach to its homeless population. View this email in your browser WELLNESS CHECK This edition leans... Hey Below the Fold fam, Earlier this year, we explored

Today’s missed story: Civic education

Friday, August 27, 2021

And how 300 experts hope it can unite the nation. View this email in your browser WELLNESS CHECK This edition leans... Hey Below the Fold fam, We're stoked to wrap up the week with a major

Don't touch that dial – the new guy just closed the application that no one is meant to close [Tue Sep 28 2021]

Tuesday, September 28, 2021

Hi The Register Subscriber | Log in The Register {* Daily Headlines *} 28 September 2021 Don't touch that dial – the new guy just closed the application that no one is meant to close Don't

What A Day: Wisdom of crowding

Tuesday, September 28, 2021

Voting down Biden's agenda while doing a little curtsy. Monday, September 27, 2021 BY BRIAN BEUTLER & CROOKED MEDIA -Guy who threw an egg at Emmanuel Macron Will the government shut down? Will

Deadline Extended: 24 Hours Only!

Monday, September 27, 2021

View in browser Deadline Extended—24 Hours Only Fellow Investor, Last week I sent you an exclusive offer to join Forbes CryptoAsset & Blockchain Advisor, but I heard many of you missed the deadline

Tough week ahead for Democrats

Monday, September 27, 2021

Plus, Germany's center-left Social Democrats win by a hair. Democrats face dual challenges in Congress; Germany's center-left Social Democrats narrowly win election. Tonight's Sentences was

Your Tuesday Briefing

Monday, September 27, 2021

Germany's election results. View in browser| Continue reading the main story Morning Briefing, Asia Pacific Edition September 28, 2021 Author Headshot By Melina Delkic Writer, Briefings

The Public Continues to Underestimate COVID's Age Discrimination

Monday, September 27, 2021

Columns and commentary on news, politics, business, and technology from the Intelligencer team. Intelligencer Intelligence, in every sense of the word. Subscribe now. Today's Top Stories 1. The

Your Lot in Life

Monday, September 27, 2021

Used cars, Bus Drivers, and Bullet Points Monday, September 27, 2021 - The Day's Most Fascinating News from Dave Pell Subscribe Store Current Share Archives NextDraft Monday, September 27, 2021 1

☕️ Too early?

Monday, September 27, 2021

Supply chain woes could dampen the holiday season. September 27, 2021 Retail Brew TOGETHER WITH Lexer Hey there. We hope you had a nice weekend. But if it wasn't all that eventful, no worries—

☕️ Hold my beer

Monday, September 27, 2021

Marketing non-alcoholic brew. September 27, 2021 Marketing Brew TOGETHER WITH Listrak Good Monday afternoon. If you liked our latest Marketing Brew CTA event, you'll love Retail Brew's event

☕ Bounty

Monday, September 27, 2021

How did Twitter's AI bias bounty program come together? September 27, 2021 Emerging Tech Brew TOGETHER WITH Roborock Hello there. Starting today, you all can nominate yourselves for inclusion in a