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GordonJ
February 6, 2022, 12:27 PM
Fire engines, emergency trucks, UTILITY trucks...

These big money purchases are scheduled a few years out in most cities, then when the budget comes in, they may order. Now some things, may have escalation clauses attached.

It may take a year to get in line for a slurry machine for example, and if the Mfgr is using steel, and inflation hits and the time between their order and the delivery, there is escalation they can pass onto the customer.

However, there could be penalty deadlines too. What is ONE of the supply PROBLEMS is that small critical specialty and limited machining (meaning only a few can produce it due to specs)...one tiny little 100 pound turret motor which is 8 months down the road...

Well, you all get the point.

We, as consumers, panic over toilet paper and make a run, but those types of supply problems don't actually grind things to a halt.

But when specialy mfgrs, think CAT, or FIRE ENGINES, or earth movers...especially those big items used in infrastructure, you may pass them on the highway and think their work is a pain in your patoot.

But who gives a thought to the EXPENSE of those things? And replacement parts? And supplies?

Well, I do.

Anyhow. It isn't a consumer concept about the supply chain, we've got plenty of things to wipe our butts with (albeit, not as wonderful as fluffy TP).

But in the Gov't supply chains, country, states, counties, cities...where there are billions of dollars of orders on the books, THAT is where one area of the supply crisis is going to show up very soon. It has taken months for it to catch up, but we will see more inflation before we see prices fall back.

Not only will prices rise, packages will get smaller. The cheerios box may be the same size but contain half an ounce less (X millions of boxes).

Great time to get into buying and selling.

Gordon


Thanks Gordon,

Your post is an important post!

I'll tell you a funny story...

A few years ago, I bought a car from my friend... It was kind of old (1993), but it ran... When I bought it, the car was about 20 years old... It was a second car (my wife has a little bit fancier Prius)...

My friend was moving interstate for work at short notice, and he wanted to get rid of his car quickly... He wanted $500 for it, so I paid him...

Well after about 7 years, that car stopped running. I ain't no mechanic, but I was told that there was something wrong with the starter motor. To fix it would cost more than the $500 I paid for the car!

Well... I just sat on it... then, a couple of months ago, someone came to our door. He was offering $100 to buy the old car which didn't work any more (to sell for parts)...

My wife - who is an amazing bargainer (I've seen nothing like it) - managed to bargain him up to $200...

I couldn't believe it! I bought the car (working) for $500... then, many years later, sold it (not working) for $200...

But that's because we're in a crazy time of low supply... The value of the old, non-working car, had gone up...

Best wishes,

Dien


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