It all started with a microwave.
Let’s be clear, since we’re not talking about just one microwave, but the supply chain of microwave ovens in the United States. In April 2020, the control boards that operate microwaves were suddenly no longer available.
“They say Amana microwaves are 100% manufactured in Amana, Iowa, and that they are the only American made commercial microwave, and that’s true,” says Jeff Hessel, President of BSE Marketing. “But the control boards come from Asia, and we were out of control boards. There was a period of time when we couldn’t get microwaves, because you can’t buy a control board in the United States anymore. They’re all imported.”
Since Asia extended the shutdown of its manufacturing plants due to COVID-19 into the spring of 2020, a ripple effect has taken place all over the world, and the consequences are far from over. At Singer Equipment Company, we’re prepared for equipment delays now. We want to ensure you have the tools you need to navigate these uncharted procurement waters.
“We are so in this together as an industry,” says Hessel. “It’s incumbent upon us to educate contractors and operators that temporarily, expectations just have to change.”
Copper, stainless steel and packaging have fallen into short supply, following the closure of material mines abroad for several months.
“Stainless steel has gone up to about a twelve-week lead time. It used to be a three-week lead time,” says Hessel. “What we didn’t anticipate was copper. Every refrigerator compressor has copper, every ice machine has copper and most ranges have copper, unless they’re using stainless steel tubing. Copper is mined in Asia. Those mines were closed down for four months.”
Now, our industry is feeling the pressure point more than ever.
“We didn’t see this far enough away,” says Hessel. “After four months of closed mines coupled with five months of inventory on hand at the manufacturer level, people start to run out of inventory.”
The supply of the product itself, coupled with restrictions on labor, provide the perfect storm for the current supply chain conundrum.
“About fifty percent of people were working at the shipping ports, so product took twice as long to get on the boats,” says Hessel. “When product arrived at the port in L.A. or New York, again, we had about half the people unloading the boats. There were cargo ships lined up as far as the eye can see, waiting to unload.”
With these details, it’s made clear that the intricacies of our domestic supply chain are strongly dependent on an ornate global network of suppliers. ‘Made in the USA’ takes on a new meaning.
“You can say you’re ‘Made in America’ all you want,” says Hessel. “The parts come from Asia. Ford F-150s have been taken off the line because they couldn’t get the parts. Nothing is more American than baseball, apple pie and Ford F-150s.”
BSE Marketing represents Alto-Shaam, one of Singer’s preferred equipment manufacturers. All Alto-Shaam equipment is proudly made in Milwaukee, Wisconsin.
“Alto-Shaam is the most American made brand that you could possibly dream about,” says Hessel. “They get their control boards from Asia. Everybody got caught off guard, but American made manufacturers do have some advantage.”
With this, we recommend planning ahead and getting started on your equipment needs right away.
“Give yourself more time and trust your dealer,” says Hessel. “In the next six to ten months, restaurateurs need to be incredibly flexible and be trusting of who they’re working with.”
If you’re looking for equipment or planning to look for equipment, start now, with Singer Equipment Company. We’re here to help. Please send us an email at marketing@singerequipment.com for more information on our stock equipment today.
