Wells Fargo CEO Says Supply Chains “Will be Solved” in “6 to 12 Months”



The situation where employers are struggling to hire and the supply chain crisis is forcing companies to raise prices is expected to persist for at least 6 to 12 months, a bank chief said.

“The realities of things like … wage pressures … supply chain pressures … all of these things are going to continue to contribute to this wage inflation that we are seeing,” Wells CEO and Chairman said. Fargo, Charles Scharf, at Yahoo Finance’s Andy Serwer at the Milken Institute’s Annual Global Conference.

Noting that supermarkets are already expect higher prices, Scharf added that while “this is all very, very real, … all of these things will stabilize. Supply chains will be resolved, I personally think it will take six to twelve months.”

Charles Scharf, CEO of Wells Fargo, speaks at the Milken Institute 2021 Global Conference in Beverly Hills, California, United States on October 18, 2021. REUTERS / David Swanson

The impact of the supply chain crisis on small and medium-sized businesses to watch out for

As companies have started to introduce price increases on household products, economists continue to question whether inflation in the US economy is transient or not.

One of the factors pushing inflation up is the country’s supply chain fiasco affecting various commodities. With many containers stranded at sea and blocked trucking routes, experts predict these issues will resolve themselves.

But they disagree on exactly when these pressures will ease.

Barbara Humpton, CEO of Siemens USA said Serwer at the Milken conference on Monday that its supply chain professionals expect disruption until 2022.

10/23/21: Shipping containers are reflected in a pond in the Port of Savannah, Georgia.  The supply chain crisis has created a backlog of nearly 80,000 sea containers at this port, the third largest container port in the United States.  (Photo by Paul Hennessy / SOPA Images / LightRocket via Getty Images)

10/23/21: Shipping containers are reflected in a pond in the Port of Savannah, Georgia. The supply chain crisis has created a backlog of nearly 80,000 sea containers at this port, the third largest container port in the United States. (Photo by Paul Hennessy / SOPA Images / LightRocket via Getty Images)

Others foresee an even longer time horizon for supply chain disruptions to subside.

“We expect the tense supply chains to last until early 2023,” Peter Sand, chief shipping analyst at BIMCO, a Copenhagen-based shipping group, told Yahoo Finance in a statement. previous interview. “We are essentially seeing a global disruption in end-to-end supply chains.”

Scharf said that at this point he was also concerned about the “consistency” of the impact of these issues on businesses and whether or not small and medium-sized businesses would be outsmarted by large companies. .

“When inventory levels go down, who gets the shipment versus who doesn’t? Who is able to spend? Who is able to pay the increase in wages? Scharf explained. “This is something we need to watch out for and continue to understand how we are helping them.”

Aarthi is a reporter for Yahoo Finance. She can be contacted at [email protected] Follow her on Twitter @aarthiswami.

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