Distributors Supply Chain in 2023 BY MICHAEL WILSON Challenges for and the Preparedness and resilience will help distributors deal with obstacles. J ansan and other distributors have been grappling with several challenges since the COVID-19 pan-demic began. Once the pandemic subsided, many thought things would soon return to normal. Far from it. Instead, the door closing on the pandemic has opened the distribution industry to a host of new complications, most of which the industry has not experienced in years—if ever. So, what can we expect in 2023? First, let’s look at the big picture. The current trends indicate that 2023 will be much like 2022. However, some challenges may lessen in the coming year, but they may be replaced with new diffi culties. While no one has a crystal ball, here are some issues distributors and the supply chain may grapple with in 2023. Backlogs Supply shortages and congested ports have been a problem since the pandemic began. In October 2021, the Wall Street Journal reported that many of these problems would recede in 2022. Yes, there has been some progress on some fronts, but there have also been unexpected setbacks. Most economists now believe supply chain backlogs and congested ports will continue to be an issue into 2023. Labor shortages Although truck drivers are often well paid, for younger peo-ple considering becoming truck drivers, word has gott en out it’s a prett y tough job. Drivers must deal with long hours, all kinds of weather, special speed limits for big rigs, and demanding deadlines. Sometimes truck drivers can drive to a pleasant stop area with showers, private bathrooms, and food options. Other times they must park their trucks outside of town and get an Uber lift into the nearest town looking for such amenities. Plus, it’s a lonely job, with long days away from home and family. These issues have resulted in labor shortages. It’s possible with an economic downturn, more people will want to drive trucks. All we can say at this point is it won’t happen overnight. Recession When it comes to recession, the only question now is: How severe will it be? According to Bloomberg Economics, the chances of a recession in 2023 are 100%. The report indi-cates that October of 2023 is expected to be the high point. After that, things should get bett er. While a change in the Russia-Ukraine war or actions by the Federal Reserve could impact this forecast, many economists now say it is too late. 26 ISSA Today | March/April 2023
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