Still No Cushion from the Foam Shortage Or Shipping Problems

See what we did there? Not to put too fine a point on it, and jokes aside, the combined impacts of the foam shortage and worldwide shipping problems have put a bit of a damper on the recent surge in the home design industry. Worse yet, the experts are not exactly optimistic about when (or if) things will return to normal.

So, what the heck is going on right now? We will try to explain.

Where Did the Foam Supply Go?

Beyond the problems created by the pandemic last year, severe weather early this year pretty much knocked out the foam chemical producers in the Gulf Coast region. And yet, while the weather has improved vastly since then, both chemical and foam production continues to lag. (HomeNewsNow.com)

“The answer, it appears, has less to do with what the industry might call “normal” supply of foam and chemicals for foam than with the relentless surge in demand for product that has yet to abate. Think of it this way, says Steve Rusing, executive vice president and president of U.S. sales for Tempur Sealy International: If the chemical suppliers are running at 100% capacity … industry demand continues to run at 120% or 130% of that capacity. The chemical suppliers simply have not been able to catch up.”

In an industry that rarely maintains a cushion of inventory in case of emergencies, this very well might have been expected. The good news is – you’ll have to wait for better news to be optimistic about the immediate future:

“Industry analyst Jerry Epperson said he doesn’t know of anybody who was expecting industry foam shortages to be over any earlier than June. And from what he’s read and from the executives he’s talked to in the bedding and upholstery manufacturing segment, all are saying it will be September at the earliest and probably year-end ‘Before we get back to the levels they were (supplying) before those storms hit in February’.”

Worldwide Shipping Crisis Update

Yeah, the experts are calling it a worldwide crisis, not just a “situation” or lead time “problem”. And, the most cringe-worthy part of this is – they don’t expect relief until next year (at best!).

According to a recent article at BusinessOfHome.com, “The flip side of the boom in the home and design industry over the past year and a half is the global shipping crisis. Demand has never been higher, and wait times never longer … Experts are now saying that it will be at least the first quarter of 2022 before shipping lead times will stabilize.”

Beyond the supply problems shared above, there appear to be three major reasons for the ongoing problems: increased demand, congestion at ports, and a serious shortage of shipping containers.

“Says journalist Rachel Premack, who has reported extensively on the crisis for Business Insider, ‘We’re continuing to see a remarkable increase in demand, coupled with a shortage of shipping containers and massive congestion at ports,’ she explains. ‘The reason we’re seeing 2022 as the point when this calms down a bit is that people are expecting that demand will continually decrease as society goes back to normal. Once that happens, ports can work through the existing backlog of containers’.”

At the moment, patience truly is a virtue, for suppliers, manufacturers, retailers, and designers around the globe. Oh, and yes, for your clients, too. So, be as upfront and honest as possible and share more information rather than less. Despite the ongoing foam shortage and delays in shipping, your bottom line will thank you for it.

We Can Deliver

At the moment, Kravet is only running a few weeks behind its normal production. In fact, their QuickShip frames, which normally would ship in two weeks, are shipping in 15 working days. All other frames, which normally ship in eight weeks, are currently shipping in 10-12. There are some caveats and disruptions but the customer is always kept informed!

Of course, the fact that all Kravet SMART frames and fabrics, which are the foundation of the QuickShip program, are guaranteed produced right here, in the USA, is sheer genius when it comes to lead times that are quicker than the competition.

Also, Ted remains available to work with you on an individual basis, consulting on how your business can best respond to the shifting demands of the marketplace, and the needs of your design and furnishings clients. Get in touch with TD Fall today.