Hanesbrands CEO warns supply chain issues could persist for months
CEO Steven Bratspies said that "every micro-step along the way" is causing issues in supply chains
Hanesbrands CEO predicts 'months' before supply chain improves
Steven Bratspies, CEO of Hanesbrands, discusses the factors contributing to the backlog in the supply chain.
Supply chain backlogs are causing massive delays heading into the holiday season, and Hanesbrands CEO Steven Bratspies predicts it will be months, not weeks, before any significant improvements are seen.
The supply chain problem, as Bratspies explained Monday on "Cavuto: Coast to Coast," goes far beyond just a shortage of truck drivers.
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"It's a little bit of everything. Trucking is a problem, rail is a problem, unloading at the ports is a problem," he told FOX Business’ Neil Cavuto.
"Labor at our own facilities is a challenge, so every step of the way is not is not optimal right now."
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The problems with the supply chain ultimately result in retailers being unable to adequately stock shelves.
Bratspies explained to the FOX Business host that consumer demand is higher than he’s seen in quite a while, which he believes is also contributing to the backlogs.
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"I think the economy does have a lot to do with it, I mean, we are seeing unprecedented consumer demand this year," he said. "And there's no doubt that that's having a huge part of it, just being asked to move more product than we've ever been."
While Hanesbrands is in a fortunate position to have adequate inventory, Bratspies noted that his receiving facility at a distribution center in California is receiving roughly one-third of the usual amount of containers.
Cargo containers sit stacked on container ships at the Port of Los Angeles, the nation’s busiest container port, on October 15, 2021 in San Pedro, California. As surging inflation and supply chain disruptions are disrupting global economic recovery, (Getty Images)
"That’s a facility that on a normal time would be receiving 20 to 30 containers a night. And right now it's getting eight to 10. It's getting a little better, but we are still just not receiving that product in as fast as we would like."
He believes Americans won’t see a solution to the supply chain problems and the matter of getting product on store shelves in the immediate future.
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"The challenge for us is, how do we get it in the right place at the right time? And unfortunately, I think that's going to be months, not weeks, before we see any real significant improvement," he warned.
"Every micro-step along the way is a challenge right now in the supply chain."