The Consumer Brands Association released the following statement from President and CEO Geoff Freeman on the January Producer Price Index release, which showed a 9.7 percent increase over the same time last year and a 1 percent jump from December, more than double its projected expectations:
“Today’s release confirms the consequences of ongoing problems with the supply chain. Every link in the supply chain is challenged – from raw ingredients to shipping finished products – resulting in what has become a long-term escalation in the cost of making CPG essentials.
“Wholesale costs have skyrocketed in the last year and with another near-record high this month, we need to be asking not when it will end but how the end can be facilitated through smart policy. There is no quick fix for issues plaguing the supply chain, particularly an economy-wide labor shortage – the government needs to engage on impactful solutions to turn down the pressure. Our industry has real concerns about filling workforce gaps and invites the opportunity to meet with the administration to discuss the challenges they are facing.”
For a key segment of the consumer packaged goods industry, input costs are higher than average. The PPI for food manufacturing is up 14 percent over last January. CPG industry wages are also up well over average, with manufacturing wages rising 8.3 percent, compared to 4.3 percent overall wage growth. Adding further pressure, demand for CPG products rose 11.1 percent in December over the same period the year before.
For more information, visit consumerbrandsassociation.org.
Cosumer Brands recently commented on the January Jobs Report. To read the full story by The Shelby Report, click here.