Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone, and business.
Britain’s supply chain crisis is worsening by the day, with retail stocks running low, supermarkets struggling to get their regular food sets off the shelves, and hospitality companies facing shortages.
Inventory levels for major retailers are at their lowest since at least the 1980sThe CBI warned yesterday, due to the disruption of the global supply chain caused by the pandemic and the shortage of workers in many key industrial sectors, in addition to the disruption of Britain’s exit from the European Union with the exit of the United Kingdom from lockdown.
This shortage of workers and materials worries economists, who fear recovery is at risk.
Andrew Sentence, a former member of the Monetary Policy Committee of the Bank of England, warns:
“It’s absolutely stunning, I don’t think we can dismiss this as a flash in the pan. Now that the lockdown has been eased, we’re seeing a more honest reflection on the impact of Brexit and the issues piling up before the pandemic.”
We can see this going on for longer than people expect. The skills shortage could last for a few years, the impact of Brexit on our ability to quickly attract workers from the EU will not go away, and the training process has been severely disrupted by the pandemic, when people were out of work and out of work. . “
Again on Monday, UK factories warned that their stockpiles of the material are at their worst ever (since 1977), with shortages of components for the electronics and plastics industry.
The CEO of Co-operative Group has seen it, warning that shoppers will face fewer options.
Steve Morells, CEO of the cooperative group, said times That the current food shortage is the worst he has known, with post-Brexit immigration rules and the Covid-19 virus making it difficult to get food on the shelves.
“The imperfection is at a worse level than I’ve ever seen”
Morells attributed the crisis to “Brexit and the issues caused by Covid” – with the collaboration now retraining employees as truck drivers in the face of an estimated 100,000 shortages across the industry.
Statistics show that about 14,000 European truck drivers left the UK last year and only 600 returned.
With McDonald’s lacks milk and bottled drinksThe crisis is becoming increasingly common.
And if the situation continues to deteriorate, Christmas dinner foods like turkey and pigs covered in blankets could be in jeopardy.
The British Meat Manufacturers AssociationCEO Nick Allen He says:
“Some pig handlers have to reduce the number of pigs they process per week, so this is starting to affect the farm again.”
“We’re working on trimming, prioritizing, and cutting things out, so there won’t be Christmas-favorite totals like we used to.”
But could taller trucks be part of the solution? The UK government, which has resisted calls to grant temporary work visas to drivers of heavy goods vehicles from the European Union, believes that “environmentally friendly” extra-long trucks that reduce the number of freight trips could be on the roads next year.
But there are concerns that such long vehicles could endanger pedestrians and cyclists.
The Telegraph explains:
Longer trailers (LSTs), which are up to 2.05 m (6.8 ft) longer than the current limit of 13.6 m (45 ft), can save up to one in eight trips by installing more cargo, according to a nine-year trial by the Department of Transportation (DfT).
The government had initially planned to run a trial for 15 years until 2027, but last year it was consulted about ending the scheme early after concluding that the trial had yielded sufficient data.
Responses to consultations were divided, with 57 percent supporting an early termination of the trial, and 43 percent calling for LSTs to be removed from roads entirely, out of concern for at-risk road users.
schedule of work
- 9am GMT: Ifo survey of business climate in Germany
- noon GMT: weekly mortgage applications in the US
- 1.30pm GMT: US Durable Goods Orders for July