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Study: $65 billion worth of Christmas presents at risk due to a supply chain breakdown

Study: $65 billion worth of Christmas presents at risk due to a supply chain breakdown
Jordan Major

Over $65 billion worth of Christmas presents are in jeopardy as the supply chain problems continue to delay shipments of products throughout the globe.

The latest data comes from a report entitled “The Global Holiday Supply Chain, How Much is at Stake?”  by Quincus, a prominent worldwide supplier of AI-driven supply chain optimization technologies, and the Centre for Economics and Business Research (Cebr).

In particular, Quincus and Cebr assessed the value of commodities in the global economy across three categories – clothing, consumer electronics, and toys – which correspond to the industries that account for the bulk of presents given over the holidays each year.

$65 billion estimated supply chain. Source: Quincus report

As per the findings of the study, the total value of presents in the worldwide Christmas supply chain is expected to reach $65.1 billion this year.

A decrease in the value of gifts

Due to the present global supply chain instability, companies have no way of knowing if those gifts will arrive on time or will be left in limbo, resulting in significant economic anxiety instead of the anticipated festive happiness that you would otherwise expect.

Consequently, the statistics reveal that the present global supply chain bottleneck has resulted in a modest decrease in the estimated value of gifts delivered for the holidays in 2021 compared to the same items transported during the same time the previous year. It seems that the delays are already having a significant impact on the global economy, as shown by this research.

Quincus co-founder and Chief Product Officer, Katherina Lacey, stated: 

“With $65 billion worth of gifts locked up in this global supply chain, it is clear there is a lot at stake.”

She added:

“The fact that we are not seeing the increase that we would expect indicates that the global supply chain crisis is having a cooling effect on the global economy at a crucial time.”

For most of the pandemic, one significant macroeconomic concern has been the ongoing supply-side disruption affecting the global economy; supply networks are projected to be put under more strain as firms strive to meet rising demand levels as the global economy recovers.

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