BOYNTON BEACH, Fla. — Supply chain issues that have been burdening Americans for more than two years are now causing a small business owner in Palm Beach County to scramble to find what he needs to open his new shop.
Back in November 2021, Ron Katz began planning the opening of a new pet supply store, Pet Supplies Plus, in Boynton Beach.
The original plan was to open the shop last year.
"We've been having a lot of problems getting materials in," Katz said. "That's getting to be the biggest issue."
However, Katz told WPTV the clock is ticking, and he has no choice but to open up next month.
"We have to start paying rent, and the rent on this is over $20,000 a month," Katz said.
But Katz said supply chain issues, specifically with electrical supplies, are holding his team back.
"We were supposed to get our main boxes last Monday from our distributor," Katz said. "They're electrical boxes that give power to the entire building, and I get an email on Monday morning, and it says, 'I'm sorry but we've been delayed.' How long has it been delayed? Until September. I call them up and they say there's nothing we can do. There's not one in the United States."
Carl Gould, a business analyst and president of 7 Stage Advisors, said he's not surprised.
"There are a number of industries that are still being impacted by the Ukraine-Russia conflict," Gould said. "China very recently still had COVID restrictions."
On top of that, Gould said many consumers are overordering some products because of the shortages, which is making the problem worse.
"It's creating gluts in some areas and shortages in other areas," Gould said. "So, if you're struggling to get your hands on a certain raw material, you need to go to the secondary market."
According to the Penny Hoarder website, along with electrical supplies, food items like lettuce, eggs and poultry, medical and health-related items, such as tampons and baby formula, and household goods like cat food and canning supplies, are all expected to be affected by supply chain shortages and heavy consumer demand over the next several months.
These shortages are forcing many small business owners, like Katz, to find other alternatives to get what they need.
To get the power on by April when he hopes to open, Katz had to find another supplier.
"The new stuff was just sent out today, so hopefully by Friday we're going to have it," Katz said. "Unfortunately, that's costing a lot more money that we didn't plan on in our initial budget, but we don't have a choice."
Gould said it will likely be another six months or so before the supply chain starts to correct itself. He believes this could affect supplies for hurricane season.
He recommends consumers, specifically small business owners in Florida who sell these items, stock up on them sooner rather than later.