Supply chain latest: Prices to surge further in 2022

The ongoing global supply chain adversity has undoubtedly left an impressionable mark on every aspect of our lives, with skyrocketing market demand and a severe shortage in supply, leading to significant hikes in product costs.

Throughout 2021, the demand for consumer end products, raw materials and electronic components have left store shelves empty, seaports’ cargo yards flooded with shipping containers and storage facilities overflowing with delayed packages, citing fears over further surges in prices throughout the year ahead.

Electronics

Semiconductors are essential electronic components of various products across nearly every industry, including automotive, consumer electronics, home appliances and more.

With the vast majority of semiconductors being manufactured in Asia, and with two suppliers accounting for nearly 70 per cent of the global supply, the end products are set to witness an inevitable price surge in 2022.

Prices of smartphones, computers, home appliances and other consumer electronics are estimated to rise by seven per cent to eight per cent.

Cars

New car prices are estimated to peak during the second quarter of 2022, with used cars prices soaring through 2021 as inflation rates hit 31.4 per cent compared to 2020.

Furniture

The Scandinavian manufacturer of ready-to-assemble furniture, IKEA has announced a 9 per cent increase in furniture prices due to the ongoing supply and transportation disruptions.

“Like many other industries, IKEA continues to face significant transport and raw material constraints driving up costs, with no anticipated break in the foreseeable future,” Ingka Group, the holding company owning 90 per cent of Ikea’s stores, said in a statement released on Thursday 31 December.

Furniture prices are estimated to spike well beyond 10 per cent, due to the global shortage in shipping containers and the skyrocketing sea shipping fees.

Food

As inflation hits an all-time high, food manufacturers are preparing to raise prices across a wide range of products in the year ahead, including meats, poultry, fish and eggs. Analysts estimate a five per cent surge in food prices in the first half of 2022, to meet the increase in labour, packaging, shipping and logistics costs.