Shortages
In early June I was visiting Sainsbury’s supermarket in Crayford, apparently their biggest site in the UK, when I noticed that several shelves had the following sign. “Please bear with us. We’re experiencing high demand”. At the time I thought nothing of it but then I started seeing similar notices in other stores. I then began seeing stories on some news websites about supply chain problems. This point was then reiterated on the news radio station LBC. Two month on and this issue is now finding its way into the mainstream press. McDonald’s currently cannot supply milkshakes or bottle drinks and Nando has had to close 45 branches around the UK as it has no chicken wings to serve. It is now becoming very clear that there is a big problem on the horizon, due to several complex factors. If it is not addressed this matter will only get worse with shortages directly impacting upon Christmas sales.
It would appear that Britain’s supply chain crisis is a result of worker shortages and transport disruption caused by Covid and Brexit. Confederation of British Industry (CBI) has stated that major retailers currently have the lowest stock levels since 1983. Furthermore a national shortage of lorry drivers and workers for food processing plants has led to increasing disruptions for food outlets and warnings of further empty supermarket shelves. Andrew Kuyk, the director general of the Provision Trade Federation, said there was no shortage of produce from UK farms, The gaps on shelves are instead the result of manpower and logistical difficulties. “Food is still being produced on farms and in factories, but it’s getting it to the consumer that is proving the challenge in lots of different ways. There is a lack of lorry drivers, warehouse staff, staff in retail distribution centres, in the supermarket to put it on the shelves”.
So what is being done to address the situation? Recruitment across all related industries has increased but so far has not remedied the situation. The big supermarket chains are offering substantial bonuses and pay increases, especially to HGV drivers. However, the short term result is that they’re merely poaching staff from smaller outlets and alleviating their own problems by compounding those of other sectors. Another aspect of these ongoing staff shortages is the fact that those who previously worked in these jobs were migrant labour from Europe. The post Brexit landscape with increased administrative work and bureaucracy has not proved conducive to attracting replacements. Furthermore, although not exclusively a Brexit issue, its very association makes this a politically charged subject. The current UK government which was elected on the mandate of “getting Brexit done” will not want to concede that there are downsides to the undertaking.
At present, although this supply and labour problem is currently known in the UK, it has not become the focus of the UK media. Therefore many members of the public will be oblivious of this problem until it directly affects them. I wouldn’t be surprised if we see the tabloid press capitalise on this aspect, once matters worsen. I also suspect that the UK government will be late to act and when they do, their response will be inadequate, as it has been with everything else they’ve dealt with since December 2019. I’m curious to see if shortages at Christmas will have a greater impact upon the Prime Minister’s approval rating than the thousands of excess COVID-19 related deaths. In the meantime, we’ve bought a second freezer and are doing our best to prepare for a difficult winter. Sadly not everyone is in a position to do so. What a ridiculous state of affairs for a G7 country.