DENVER (KDVR) — The nationwide supply chain crisis is driving up prices on just about everything from cars to food.
At Cherry Creek Automotive in Denver, owner Justin Franks is in the business of selling used cars. With a microchip shortage leading to lower inventory of new cars, the trickle down supply to Cherry Creek Automotive is quickly drying up. For Franks, who has more than three decades of car industry experience, what’s happening now does not compare to anything else.
“This is the tightest I’ve ever seen it in all of those years,” Franks said.
Keeping the car lot full is nearly impossible.
“It’s been a roller coaster ride across the bottom,” he said.
Currently, the market is experiencing tight supply and high demand. That combination leads to higher prices. Business owners have sounded the alarm on the supply of meat, liquor and various other goods.
The FOX31 Problem Solvers asked University of Denver supply chain management professor Jack Buffington what’s causing these issues.
“The supply chain is not able to predict accurately how much of something is needed,” Buffington said.
The pandemic is largely to blame for throwing the supply chain for a loop. As we get back to normal, the logistics behind it all need correction, Buffington said. That correction may take longer than many might think.
“It’s not going to be the end of the year now,” Buffington said. “Now we’re talking about going into 2022.”
Experts say consumers should not overreact. People should simply buy what they need.
“The supply chain will eventually keep up,” Buffington said. “It may take you a little bit longer to get it, but you’re going to get the goods that you need.”
There will be even more demand over the holidays. This is especially the year to start Christmas shopping early, Buffington said.