The Coronavirus Impact
Issue #4: Home Appliance Shortage Pushes Into 2021

Sources: John Matarese, wcpo.com; Greg Miller, Senior Editor, freightwaves.com

Mountain High Appliance is committed to keeping you informed of the latest appliance industry news, including the ongoing appliance shortage - even if the news isn’t as good as we would wish.

JUST THE FACTS:

Sadly, appliance shortage that began in March 2020 shows no sign of letting up. It turns out it doesn’t matter if you are looking for a freezer or refrigerator, an $800 model or an $8,000 model. You are going to find shortages just about everywhere. 

“When I check on our vendor websites, product is just not available,” says Maureen Ledwell, General Merchandising Manager. “For instance, they will give an estimated availability time of May or June, then have to change it to September or October, or even later.” 

Why the shortage hasn’t ended? 4 Reasons:
1) Shutdowns and Slowdowns

The result of factory shutdowns/slowdowns in March, April, and May 2020, along with delays getting appliances shipped from China and other parts of the world during that time, is still rippling throughout the industry.

2) Shortage of Foreign-Made Parts

The second reason is shortages of foreign-made parts, such as wiring harnesses, compressors, foam installation and plastic parts, which still forces US factories to shut down their assembly lines until product arrives.
3) Container Ship Traffic Jams

Third, there is a historic container ship traffic jam off California’s coast, especially at the ports of Los Angeles and Long Beach. Some vessels are spending almost as much time at anchor as it takes to traverse the Pacific Ocean. “The process to bring product in at the port that used to take 4 days is now taking 4 weeks,” says one of Mountain High Appliance brand representatives. Delays on the landslide are causing the logjam at sea. One of the challenges inside the ports involves COVID infections among dockworkers. The International Longshore and Warehouse Union (ILWU) reported 694 of its members had tested positive as of Jan. 17, 2021. By Jan. 25, the number had jumped to 803. Kip Louttit, executive director of the Marine Exchange of Southern California, told Greg Miller, Senior Editor at FreightWaves and American Shipper: “We seem to have settled into a new, new normal of roughly 30-40 container ships at anchor. Whether that will continue or not, I don’t know.”

Lauren Brand, president of the National Association of Waterfront Employers, testified at a House subcommittee hearing on Tuesday that ships currently offshore hold around 190,000 truckloads of goods.

Port of Long Beach Deputy Executive Director Noel Hacegaba told Miller, “It also goes beyond the ports. For example, to the warehouse and distribution sector, which has implemented new safety protocols due to COVID which affects their capacity. It’s a convergence of all of these factors.”

4) Customer demand continues to increase
“Demand for home appliances is as high as ever.” Ledwell adds, “Some of the drivers  are the positive growth within the housing market, not just new home construction but also in strong existing home sales. Consumers continue to focus on the home and nesting. We are seeing more home renovations, and people investing in the kitchens they’ve spent more and more time in.”

Final Thoughts:
Taken together, the dynamics mentioned have forced consumers to wait for weeks, even months, to receive their orders as factories slowly ramp back into gear. This trend reaches across all sectors of manufacturing, not just kitchen appliances. Stay tuned. We will continue to provide the latest information about delivery times and product availability.

That doesn’t mean you’re completely out of luck. Here is our advice for getting an appliance during these times:

1. Try a local, independent retailer. 

2. Prioritize your must-haves.

3. Get in line. When you find the appliance you want, go ahead and order it. This at least gets you in the que for delivery. The longer you wait, the longer it will take to have it in your kitchen. 

4. Consider a model with cosmetic flaws. 

Find out more here: https://www.mountainhighappliance.com/blog/the-coronavirus-impact-issue-3-tips-for-buying-an-appliance-right-now 

Mountain High Appliance has an ever-changing inventory of hundreds of products available in our clearance center. You’ll find brand name, brand new cooktops, ranges, wall ovens, warming drawers, microwaves, dishwashers, refrigerators, washers and dryers, ventilation systems & more, ready to take home immediately.

Call, Chat or Visit us today and speak to an appliance expert. Always competitively priced. Always here to help.