Supply chain issues affecting small businesses in Utah
Supply chain of glass hardware manufacturer issues have caused problems on a global scale and caused severe damage on store shelves in the United States. They have also had a real impact on small businesses in Utah.Everything from manufacturing to shipping seems to be backed up, which means that Salsitas Mendoza, a salsa sauce company based in South Salt Lake City, has difficulty finding glass jars. For a time, they ran out completely.
About ten years ago, Linnaea Mendoza and her husband started making salsa as a gift. Their hobby developed into a company called Salsitas Mendoza.
"Now we are in all Harmon in Utah. Mendoza said, we have it in all Whole Foods, South Fork Hardware and some other places in Utah.
"They said it was backed up for 12 weeks, waited for four weeks, and then backed up for another four weeks," Mendoza said.
When they can find glass, the cost of transportation will soar. Prices start at approximately US$1,100 or US$1,200. It climbed to $1,800.
"The manufacturer said,'Hey, there is nothing we can do,'" Mendoza said. "There is a shortage of labels, a shortage of glass, a shortage of aluminum. An increase of 10%-an increase of 10% for a thousand pieces. You know, this is a lot of money."
"Our products have risen in price for the first time in 10 years, all because of a shortage of glass," Mendoza said.
Derek Miller, President and CEO of Salt Lake Chamber, said there are many reasons for the supply chain problems that companies such as Salsitas Mendoza see.
Miller said: "They just got support, by the way, even before the pandemic."
He said another problem is that manufacturers are still lagging behind producing products after having to stop work early during the pandemic.
"In some cases, the price of transporting products and obtaining inputs for one's own business has risen by 600%," Miller said.
"I expect that as we solve some of these problems, the slowdown in production we saw a year ago, the labor problems we saw in ports, and over time these problems will start to ease - but it will definitely take time. ," Miller said.
For Salsitas Mendoza, they were told that they would raise their prices again in November or December to buy glass jars, but they believe their new pricing should absorb this cost, depending on the magnitude of the price increase.
"There is so much pressure, so much pressure. Every aspect of the company is affected by the shortage," Mendoza said.
For Salsitas Mendoza, this is not as simple as finding another container. Plastic has a short shelf life, and different bottles are not suitable for the process required to make salsa. They don't think the price of glass will fall, but they hope that the cost will stabilize.
Now, they should make caramel sauce, but these jars have been out of stock for a few months, and the lid does not even have an expected arrival date.
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