Skip to content
Plain English
  • Pricing
  • Why Plain English?
  • 🌟 Watch #500 🌟
    Sign in Sign up
    Plain English

    • Pricing
    • Why Plain English?
    • 🌟 Watch #500 🌟

    Sign in Sign up
    • Pricing
    • Why Plain English?
    • 🌟 Watch #500 🌟
    Sign in Sign up

    Lesson #414

    Supply chain shortages around the worldCurrent Events
    November 8, 2021

    Global supply chain is still clogged heading into holiday shopping season

    The global supply chain has had a rough couple of years. First, of course, there was the pandemic. Then, the container ship got stuck in the Suez Canal. To top it off, there have been several natural disasters that have added to the delays. This has led to shortages felt everywhere, and it doesn’t seem like things will be sorted out anytime soon. Plus, learn “stay afloat.”

    Exercise

    Exercises for Lesson 414

    Expression

    Stay afloat

    To “stay afloat” is used to describe a business struggling to survive or a person struggling to keep their finances in order.
    Video

    An average of

    Talk about quantities in general with 'an average of'
    Lingo

    Marvel to behold

    A "marvel to behold” is a person or thing that is particularly spectacular, enjoyable, or unbelievable to watch.
    • About
      • Why Plain English?
      • Contact
      • Features
    • Resources
      • All Resources
      • Listening
    • Join Plain English
      • Plain English Plus+
      • Starter Membership
      • Forever Free
    ©2023 Plain English.
    • Terms of Use
    • Privacy Policy
    • Contact Us

    Forum Description

    Are you looking for, well, anything? You might be waiting a while

    Lesson summary

    Hi there everyone, this is Jeff, and you are listening to Plain English, where we help you upgrade your English with current events and trending topics. If you monitor business news, you know that one thing is trending above all others: the global supply chain. And that is today's topic. If you don't know what the heck that is, don't worry. We'll cover that in the main lesson. This is lesson number 414, the telephone area code for Milwaukee. JR has uploaded the complete lesson to PlainEnglish.com/414. The area code isn't important; I just threw that in there. Anyway, we also have an English expression for you today. That is "stay afloat ," and I have a clever quote of the week from a famous American author. Let's dive in.

    A tangled global supply chain

    The global supply chain refers to the many steps required to produce a product from the raw materials to the finished good. The raw material is like cotton growing in a field; a finished good in that case is a cotton t-shirt. For example, right now I'm wearing a shirt that's 50 percent cotton and 50 percent polyester, so the raw materials are cotton, polyester, and the ink used to color it. The supply chain required to produce my t-shirt probably involved a cotton grower in the U.S., who may have shipped the cotton to China, where it was combined with polyester. The fabric may have been treated and processed at one facility, and then sent somewhere else (possibly another country) to be cut and dyed. The dye may have come from India. The t-shirt then likely came back across the Pacific Ocean and somehow made it to my doorstep. The materials would have taken trucks, container ships, trains, and finally a delivery van. Somehow, everyone got paid along the way and I got the t-shirt in the right size and color. If that sounds complicated, imagine the supply chain for a car. Global supply chains got much more complicated during the 1990s and 2000s when globalization took off. Companies around the world determined that individual parts of a manufacturing process didn't all have to be done in the same place; in fact, it was better for different parts to be done in different locations. Lower trade barriers, China's economic liberalization, and reduced shipping costs all helped accelerate the trend. When it's working, which is most of the time, the global supply chain is a marvel to behold. Trillions of dollars of value is transported on planes, barges, ocean liners, trucks, vans, and trains. They go in and out of warehouses, factories, showrooms, markets, and stores. A study in 2014 showed that the average car assembled in North America had 30,000 different parts and each part crossed an international border between the U.S., Canada, and Mexico an average of eight times. The supply chain is not working right now, however. As a result , consumers around the world are experiencing delays in receiving their orders or even shortages of finished goods. The supply chain is called a "chain" for a reason: there are many connected parts. When one link in the chain is broken, the whole system hurts. And when many links are broken, the system really suffers. That's what's going on now. Parts of the chain are broken, while other parts are just tangled. The coronavirus is partially to blame During the worst of the lockdowns, demand for some goods was depressed, while demand for other types of goods soared. Fewer people shopped for clothes and cars during the pandemic. Airlines canceled orders for planes. Rental car companies sold their fleets in a panic to stay afloat . Restaurants stopped ordering equipment for their commercial kitchens. Meanwhile, housebound workers ordered big screens, exercise bikes, speakerphones, and bread makers by the containerful. They also spent a lot of time fixing up their homes. When the lockdowns were lifted, the opposite happened. Consumers, flush with cash from their savings and government benefits, returned stronger than ever. The problem is that the makers of consumer goods could never have anticipated the rapid change in demand. And many found themselves short of critical supplies right when they needed them most. Add to that, several additional problems like border controls being much stricter now due to COVID-19; crews on container ships crossing the ocean must undergo rigorous testing and possibly quarantine. Britain left the European Union , so the U.K. and its biggest trading partner are navigating new rules. Many of the world's shipping capacity was directed toward producing and distributing a vaccine . A container ship got stuck in the Suez Canal , jumbling global shipping for weeks. Europe and China experienced devastating floods. China is facing a shortage of power and they've ordered factories to shut periodically, further snarling global production. A major drought in Brazil has led to a weak coffee harvest. Worker shortages mean fewer people are available to drive trucks in America and Britain. The result is that consumers and businesses alike are experiencing shortages. Shoppers are having a hard time finding durable goods like appliances, cars, and computers; household items like furniture, gardening supplies, and tennis balls; and staples like toilet paper, coffee, and cooking gas. The White House even warned American consumers of the ultimate nightmare: parents might not be able to find the toys their kids want for Christmas. Public companies recently reported their third-quarter earnings, in which they discuss the money they made and the challenges they face. Home Depot, Walmart, and other big retailers have had to charter their own ships from Asia to America. Whirlpool, the appliance maker, said delays in getting components are holding up production. Homebuilders said they couldn't get enough windows, pipes, and lumber to build new houses as fast as they would like. Sherwin-Williams is having trouble getting the raw materials they need to manufacture paint. Nike is afraid they won't be able to keep up with holiday-season demand for their shoes. ConAgra, a big food manufacturer, said they couldn't keep up with demand either. Things are unlikely to get better in the short run. Everyone now knows that there are shortages of goods, so many companies are ordering more material than they need—deepening the problem and perpetuating the cycle.

    Ultimate nightmare: Toy shortages

    Don't ask me how they did this, but one stock market analyst calculated that public company executives said the word "supply chain" over 3,000 times in their third-quarter earnings call—far more than in any other quarter in recorded history. The White House warned of toy shortages. The White House literally warned the American people of toy shortages prior to the holiday shopping season. Toilet paper, furniture, tennis balls, cars, appliances—we can live without that. If we can't get an oven or a microwave, we can always set a fire in the backyard and cook dinner. But prepare yourself now for toy shortages on Christmas morning.
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT