States With the Most Supply Chain Disruptions | Smart Change: Personal Finance | –

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For more than two years, delays, disruptions, and shortages in the supply chain have been a major economic consequence of the COVID-19 pandemic.

A number of factors have combined to create the widespread supply chain challenges the U.S. economy faces. The onset of the pandemic and subsequent waves temporarily shut down businesses or had them operating at limited capacity, while labor shortages in the logistics industry have frequently left goods sitting at ports and warehouses. These issues created additional challenges further downstream in the supply chain. Businesses that struggled to secure supplies, parts, or other materials faced increased difficulties meeting their own production quotas. And amid all of these struggles, demand for durable goods rose during the pandemic, further straining producers’ capacity. These factors have contributed to historically high inflation, which now threatens to send the U.S. economy into recession.

Most U.S. businesses have felt the effects of the pandemic. In April 2020, the share of businesses reporting a large or moderate negative impact from COVID was 90%, and two years later, that figure has only fallen to 66%. The share of businesses reporting a large negative impact has fallen from 51% early in the pandemic to 22% now, but the percentage reporting a moderate negative impact has held steady around 40% over time.


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