Purdue dean: How supply chain crisis could impact consumers’ wallets

WEST LAFAYETTE, Ind. (WISH) — The supply chain crisis could impact wallets this year.

An expert from Purdue University says when supply is low, companies have two options. They can decrease variety and focus only on high-volume items or just say they are out of stock.

The inflation rate is also making people think more about what they want to buy, but experts say when it comes to higher prices in stores, it comes down to each industry.

Ananth Iyer, senior associate dean at Purdue Krannert School of Management, told The Associated Press, “The more competitive the industry the more likely it is that firms would absorb the hit in terms of lower margins rather than pass it on to the customer in terms of higher prices.”

He says China’s “no COVID-19” policy is also slowing production but comes when many companies are closed anyway for the Chinese New Year.

Because of this, Iyer expects any impact to be delayed since companies have likely already built up their stock.