March 2022

Supply Chain Stress Pressures Small Firm Profitability

This publication is a part of:

Collection: On Point

Abstract

U.S. manufacturers, wholesalers, and retailers coped with stressed supply chains during the past year. Manufacturers encountered difficulty obtaining raw materials and other inputs needed for production amid rising prices. Production constraints contributed to shortages, notably for automakers, but the dramatic increase in U.S. demand for goods drove most of the supply chain stress. Although the global supply chain disruption is easing, smaller businesses are likely to face more pressure on profitability than larger firms.

Author:

Erik Roos