Issue link: https://www.massageandbodyworkdigital.com/i/1471270
L i s te n to T h e A B M P Po d c a s t a t a b m p.co m /p o d c a s t s o r w h e reve r yo u a cce s s yo u r favo r i te p o d c a s t s 67 often the providers have been impacted by the trade route challenges and are delayed in receiving the needed [products]. This pushes back the dates and can be a real headache for the new spa owner." When asked if COVID is still relevant to The Spa Mart's supply chain, Lester answers, "Of course! Recently, ports in Shanghai have been closed. Factories are still slow to produce, and lead times are definitely longer due to the shortage of labor from COVID-19." Patrick agrees. "Fuel prices, as all Americans know, have skyrocketed," she says. "Couple this with the lack of employees overseas due to COVID lockdowns, the scarcity of raw materials and finished goods, and increasing demand, prices will likely rise in all aspects of business, depending on the types of goods your business relies upon, the speed with which you can acquire the needed goods, and their [related] costs." Patrick says scarcity always drives the cost of goods, and increases can range from 10–30 percent on the producer side, depending on the items in question. "Our company has [adjusted] our pricing but also made many more efficiencies in production that will enable us to work to keep costs low to try and maintain our basic pricing for the longer term." Oakworks is a "just-in-time" manufacturer, so they build to order. "Doing this means [the] product is built to your specifications, and we utilize only the resources needed to fulfill the orders we receive," Patrick says. "This [enables] us to maintain service, supply, and overall product quality despite many of the issues the supply chain is enduring at this time." ADAPTING TO GLOBAL IMPACTS While Patrick hopes that the shortages and delays swiftly end, she says the supply chain is "so complex that it is expected to be snarled for the remainder of the year" and will be determined by "the geopolitical climate, as well as pandemic responses in the areas affected." Until the hostilities and constant rumors of hostility subside, Patrick says Oakworks is prepared to weather the storm. She also feels that sourcing goods is paramount. "Ideally, US-based companies that produce quality raw and finished goods are an exceptional alternative to imports. Look for companies who are American- owned and have their manufacturing in the United States," she says. "As we move forward into this new market with its specific set of delivery challenges, working with a US-based company, which sources most of their raw goods stateside, can help reduce costs. Long term, being cognizant of the economies of importing versus the production stateside will be a point of analysis for many smart businesses. Price is always important, but now, equally important is availability. Finding the happy place between scarcity at historic prices, and availability from a domestic source at a slightly higher cost is a reality we must all face and address," she says. Russia's war on Ukraine has impacted Oakwork's ability to produce some products, Patrick says. "A huge area of concern for us is the high-quality plywood from Russia, which everyone uses to make high-quality portable massage tables. Due to Russia's aggression in Ukraine, Oakworks will not buy any more products from Russia and believe we all need to stop feeding Russia's war machine. We are researching alternatives to what is commonly called 'Baltic Birch,' but it comes from Russia in actuality. Prior to the aggressions, we had made a solid store of this raw material so we will be able to still provide portable massage tables a bit longer. We will source a replacement, which will equal or exceed this material in strength and durability, and ideally, we continue to look stateside to do it." COVID is also still impacting the supply chain. "Thankfully it has slowed its chaotic march in the US. Overseas, however, there are still marked lockdowns, [which] . . . can lead to shortages of goods, and thus deliveries of imports to the US could slow. The upside here would be the congestion at the US ports of entry would lessen, and available ships, which are holding viable goods, [could] move through the cycles faster. The downside is many of the goods we have come to rely on for daily life and convenience may not be available as readily as before," Patrick says. "Smart usage, strong and conservative resource management, and thoughtful and strategic domestic sourcing will continue to get us through this challenge." Lisa Bakewell is a full-time freelance writer, editor, perpetual learner, and lover of life in Chicagoland. Her areas of writing expertise span a multitude of topics that include health and wellness, travel, parenting, personal/ company profiles, a plethora of "how-to" articles (her favorite!), and technology. Contact her at lbakewell@att.net.