TKer by Sam Ro

Share this post
The indisputably good force behind the supply chain nightmare 🚛
www.tker.co

The indisputably good force behind the supply chain nightmare 🚛

It's fanning inflation. But it's a good thing.

Sam Ro, CFA
Oct 22, 2021
8
Share this post
The indisputably good force behind the supply chain nightmare 🚛
www.tker.co
Containers are seen at a port in Newark of New Jersey, United States on October 17, 2021. (Source: Tayfun Coskun/Anadolu Agency via Getty Images)

One of the most telling economic indicators is suppliers’ delivery times. They represent the amount of time between a business placing an order for stuff and when that stuff eventually gets dropped off.

Longer delivery times are a pretty reliable predictor of inflation heating up. It’s also a sign that demand in the economy is robust.

According to a new report from IHS Markit, these delivery times are the longest on record.

This isn’t exactly breaking news. There are headlines and images about supply chain bottlenecks everywhere. And TKer subscribers got updates on inflation surges here and here.

But it’s worth stressing the indisputably good economic force that got us here: demand.

Demand is a high-quality problem

Keep reading with a 7-day free trial

Subscribe to TKer by Sam Ro to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
Previous
Next
© 2023 Samuel Ro
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing