Emerging from the pandemic has created other new shifts in the economy. Inflation has hit its highest level in 40 years, severely impacting global supply chains. While it’s tempting to think this is just a passing storm, the signs indicate a more permanent transition to higher prices and localized production.
Even if the Federal Reserve gets a handle on the current wave of inflation, the longer-term structural shift of U.S. companies coming home (or closer to home) is set to keep prices elevated for years.
This will be a rude awakening for U.S. consumers after three decades of expanding choices and bargain-basement prices. In this new environment, people will be forced to become more conscious and selective in the way they consume.
Managing Director and supply chain expert Sean Laffere sheds insight on this issue in a recent article featured in Benzinga.