essentially halted when the pandemic first hit and nations ceased trading and shipping, Jankowski said. Although many ports have opened back up, COVID-19 outbreaks and the rise in gas and oil prices still threaten this system, at times leaving business owners wondering when they will get their next shipments in, including in the Pearland and Friendswood area, officials said. February survey data from the Federal Reserve Bank of Dallas revealed 64.7% of Texas business owners were still being impacted by supply chain disruptions or delays in mid- to late February. One such business is Gold’s Gym, the international fitness brand. Gold’s Gym is slated to open a new center in Friendswood this summer but has needed to remain flexible with the location’s construction due to sup- ply chain issues that could arise, said Matt Radmanovich, the head of brand public relations for RSG Group, which represents Gold’s Gym. “All of our machines are manufac- tured in Germany with a company called Gym80, and we ship them in containers across the sea,” Rad- manovich said in an email. “Getting spots on those cargo boats in con- tainers has been a challenge and has required extensive planning.” The rise in prices and supply chain issues have affected multiple indus- tries. From a consumer perspec- tive, it affects every resident in the city because they must pay more for goods and services while manufactur- ers have to raise their prices or over- compensate for the delayed times and lack of resources, Malone said. AJ Jaser, owner of Stomp’s Burger Joint, said rising costs and limited supplies have made producers shift the way they buy products. Stomp’s Burger Joint is a local chain with three locations in the South Houston area, including one in Pearland. “Prices have been volatile and very uncertain as to the future and how it will look; many people are changing their models,” Jaser said in an email. HCA Houston Healthcare, which has 13 Houston-area hospitals, includ- ing one in Pearland, has seen similar challenges with securing optimal sup- ply levels, said Brad Vicknair, HCA Houston Healthcare’s supply chain chief operating officer. Because of the hospital system’s size, it can ensure its facilities have the supplies needed and can reach out for resources across the state or nation if needed, Vicknair said. However, HCA
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Supply chain issues began nearly two years ago with the start of the COVID-19 pandemic. Included in this timeline are Texas consumer price index figures, which measure the average change over time of prices of consumer goods and services since the early 1980s, when the CPI was 100. WHERE DID THE PROBLEM START?
January 2019 CPI: 230.5 Construction costs begin increasing more frequently than in years past.
and, more recently, there have been some minor concerns with additional costs of shipping associated with increasing fuel prices.” Overall, the Houston area’s econ- omy has recovered and rebounded from shutdowns, oftentimes resulting in more demand than there is supply, said Patrick Jankowski, senior vice president of research for the Greater Houston Partnership. “We shut everything down inMarch and April of 2020, and we realized we didn’t need to shut it down,” Jankow- ski said. “So things started opening back up, and that’s when we saw the first surges in growth. The last quar- ter of 2021 was just incredibly strong. It was the strongest quarter on record for job growth.” Brian Malone, vice president of the Pearland Economic Development Corp., mirrored the sentiment shared by Jankowski. Pearland and the Greater Houston area saw unemploy- ment rates begin to decrease again after the initial shock of the pandemic as early as August 2020, Malone said. With businesses fully operational, they need as many hands as they can get, Jankowski said. However, busi- nesses have not been able to pick up where they were at prior to March 2020. The labor force in Pearland is vastly different from two years ago, Malone said. Additionally, there is also the ongo- ing rise in inflation. A February infla- tion update from the U.S. Bureau of Labor Statistics reported the con- sumer price index rose 7.9% nation- wide from February 2021 to February this year. The CPI measures the aver- age change in the prices paid by urban consumers for a variety of consumer goods and services. People have begun to land more jobs nationally. The bureau reported an increase in job creation in February with the total nonfarm payroll employ- ment rising by 678,000 nationally and the unemployment rate falling to 3.8% nationwide. This influx of job opportu- nities has left businesses competing for workers, Malone said. “Whereas they used to be able to post a job and have 30 people come in and apply, now they will have three,” Malone said. “It has dropped that drastically.” Ongoing challenges Many of the issues businesses are facing are related to the supply chain—the flow of goods from the producer to the customer—which was
2019
July 2019 CPI: 234.3 The robust pre- COVID-19 demand for
goods from overseas reduces demand for locally produced goods.
April 2020 CPI: 231.8
As people are panic- buying toilet paper, the first sign of supply chain issues emerges. Goods that are able to be stocked on shelves do not meet the 40% increase in demand for the product.
March 2020 CPI: 234.3 The onset of COVID-19 halts
2020
overseas travel and trade. The return to production of goods is not universal, and many borders remain closed.
December 2020 CPI: 235.1 A second round
of stimulus funds goes out as part of the Coronavirus Response and Consolidated Appropriations Act.
April 2020 CPI: 231.8 The first round of federal stimulus checks is distributed via the Coronavirus Aid, Relief and Economic Security Act. Many consumers use the money to buy goods they otherwise would not have, creating an unexpected spike in demand. March 2021 CPI: 240.5 The American Rescue Plan Act provides another round of federal stimulus funding, continuing to create additional demand for goods.
May 2021 CPI: 244.9 The consumer price index shows the cost of lumber is three times what it was a year ago, delaying construction timelines and forcing builders to scale down projects.
2021
October 2021 CPI: 250.4 Surges in e-commerce and logistics disruptions
lead to supply chain issues affecting businesses and consumers. Shipping delays caused by container shortages
July 2021 CPI: 246.9 A shortage of semiconductors in the U.S. causes a price
at international ports compound the issue.
2022
hike in new and used vehicles, resulting in limited stock for sale.
Officials in the city of Pearland said if fuel prices stay high or continue to rise, it could impact people commuting long distances for work. 63,128 Pearland residents commuted out of the city of Pearland as of late 2021. 36,106 workers came from outside of Pearland to work in the city as of late 2021.
February 2022 CPI: 283.7 The Russia-Ukraine conflict begins in Europe, causing gas and
oil prices to rise locally and nationally, increasing shipping and freight costs.
SOURCES: SAM TENENBAUM, WHITEHOUSE.GOV/COMMUNITY IMPACT NEWSPAPER
22
COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
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