artificial Christmas Tree prices are expected to rise by up to 66% this year due to continued global supply and a shortage of shipping containers.
Balsam Hill, an artificial tree company based in CaliforniaIs selling the 4.5-foot-high Grand Canyon Cedar Tree for $ 499 this year.
That’s $ 199 more than the same tree cost in 2020, and the price will rise by two-thirds in just 12 months.
Meanwhile, the 7.5-foot-high Picea breweriana tree in Balsam Hill is selling for $ 999 this year, compared to $ 899 in 2020. This is a price increase of over 10%.
The company, which sells in catalogs and websites, sells over $ 200 million in holiday decorations throughout the year.
However, as the company’s trees are manufactured in China, the cost of filling shipping containers is skyrocketing, so it’s up to date to feel a pinch.
Another company, Treetime, Illinois, says shipping costs have skyrocketed by 500%. Treetime artificial leaf prices range from $ 100 to $ 1,000, which also aims to raise the price of Chinese-made trees to less than 20%.
Tree companies such as Bulham Hill are raising the price of Christmas trees for the next holiday season as a result of price increases due to the global supply chain crisis.
Bulsom Hill also states that it has suffered a shortage as a result of an ongoing global supply chain shortage, with only 12 of the 50 products listed in the catalog currently in stock.
Tree inventories have fallen by 22%, and ornaments inventories have fallen by more than two-fifths (42%) in a year.
“We haven’t raised prices close to this in our history, and we’re going to cut revenues significantly,” Bulsom Hill CEO McHarman told The Wall Street Journal.
“For the first time for us, we had a catalog and no products to sell,” Herman added.
“Our luggage did not arrive on time. We are still trying to figure out exactly where the product is. Are they still on the water or stuck in the harbor? If this continues, we may be out of business. ”
According to the American Christmas Tree Association, the US market for artificial Christmas trees is a $ 1 to $ 2 billion industry.
The shortage is caused by ongoing supply chain problems that are causing a serious shortage of raw material levels.
Inflation is also rising, limiting the purchasing power of many Americans, due to the increase in the money supply from the COVID stimulus check and the increase in demand for products accused of pushing up prices.
According to The Wall Street Journal, Balsam Hill predicts prices will rise 20% this season, with Brewers Pruss Tree up 7.5 feet and 4 feet up nearly $ 200.Half-foot Grand Canyon Cedar Tree
The global supply chain crisis was the result of factors such as the COVID-19 pandemic closing factories and a shortage of workers.
The global shortage is widespread with glass and tents are now scarce
Microchips: The automotive industry, such as General Motors, lacks this product, which uses electronic materials such as automobiles, telephones, and computers.
Food: Soaring prices have revealed that the Louisiana Rose’s Markets supermarket chain receives only 40% of the food ordered from its suppliers.
Resin: This type of plastic is used in a variety of productions, and heavy equipment manufacturers Caterpillar and tent manufacturers report that production lines have failed as a result of shortages.
Glass: The shortage of this material is causing problems for food and beverage manufacturers who use it as a container for their products. Jack Daniel’s and Woodford Reserve are one of the beverage makers reporting shortage issues.
Other tree companies, such as The National Tree Company in Cranford, NJ, are also forecasting a 25% increase in sales, causing sales problems.
“We think we have 10% less wood, wreaths and wreaths in stock than where we usually go each year,” company CEO Chris Butler told CNN.
As a result of the supply crisis, the increase in other markets was also significant.
For example, food prices are rising 30% due to a shortage of products in the grocery market.
“Prices will probably continue to rise for the next two years or so,” said Phil Lempert, an analyst and food trends expert, in a statement.
Louisiana grocery chain Rouse’s Markets states that it receives only 40% of the items ordered from its suppliers.
The Department of Agriculture responded to these statements by saying:
However, Lempert and colleagues warned Americans to stock up on the basics for fear of a possible supply chain crisis that could lead to a large shortage of popular groceries.
Other food service industries and markets, such as Costco and Cisco, are also lagging behind in receiving products.
In other markets, such as the food retail industry, prices are rising due to supply shortages.
Metals, plastics, wood and glass are also in short supply, according to Reuters.
United Solutions President David Riley told Reuters that resin prices have risen 100% and Asian countries such as China lack support from cheaper resin markets.
“Currently, North American producers aren’t as fiercely competitive as if container prices went down,” Riley said.
According to Lawson Whiting of Brown-Forman Corp, glassware such as liquor bottles are in short supply as companies such as Jack Daniel’s and Woodford Reserve are at stake.
Product shipping charges will continue until the New Year, with shipping companies such as FedEx and the United States Postal Service raising prices before the holiday season.
“These changes reflect the incremental costs associated with difficult production environments,” said FedEx, which will raise shipping prices by 5.9% starting January 3.
Christmas tree prices skyrocket due to rising shipping costs amid global supply chain crisis Source link Christmas tree prices skyrocket due to rising shipping costs amid global supply chain crisis