NJ Small Businesses Face Holiday Supply-Chain Impacts

NEW JERSEY — With the holiday shopping season in full swing, supply-chain issues have not gone away in New Jersey: and they're affecting small, mom-and-pop businesses much more so than big-box stores.

"We were given warning (in) August; the suppliers said, 'Order now for the entire holiday season,'" Ken Maietta, owner of Tons of Toys, which has locations in Madison, Wyckoff and Westwood, told Fox News. "So we decided to bulk up right away; stockpile toys. But for your normal mom-and-pop that's going to be a struggle."

"Right now, I get 25 percent of what I ordered," he continued. "My shelves are fully stocked and I hope to keep it that way ... but some toy companies have cut us off totally, where we're not allowed to order until January. Freight prices have gone through the roof."

And small businesses like Jimmy's Deli in Metuchen are reporting that "all the meat, poultry's gone up 100%, 200%," owner James Jones told News 12.

Anthony Campisi, the owner of New Pearl Cleaners in that same town, told News 12 the cost of all supplies has skyrocketed. For example, a box of hangers went from $36 a box to $76.

And on Tuesday of this week, North Jersey Congressman Josh Gottheimer (D-NJ 5) signed this letter to House Speaker Nancy Pelosi and Majority Leader Steny Hoyer, calling for them to immediately pass legislation that would ease supply chain bottlenecks and lower costs for small businesses.

Gov. Phil Murphy said New Jersey is better positioned to keep consumer goods available and flowing because so many goods are shipped to the New York-New Jersey metro area on a daily basis. Things still appear to be moving smoothly at the Port Authority container port in Elizabeth, he said.

What caused disruptions in the supply chain across the world, from Hong Kong to California? Blame the pandemic and worldwide business shutdowns or slowdowns, even starting as far back as in 2020, say experts.

“The pandemic has caused disruptions to our global supply chain on many levels, impacting transportation, reducing production and causing shortages in raw materials, products and workers," said Weihong "Grace" Guo, a professor in the Rutgers Department of Industrial and Systems Engineering.

"And it’s not just a one-time hit, but with lingering effects. There is no doubt the supply chain has not fully recovered and is still struggling to return to pre-pandemic levels. During the holiday shopping season, we may have higher prices, longer waiting times and delayed deliveries," she warned.

The issues started first with as shortage of raw materials, followed by inflated energy costs and then compounded by a shortage of manufacturing workers, explained Rudi Leuschner, director of the Master of Science in Supply Chain Management program at Rutgers Business School.

"Manufacturing transportation delays and warehouse shortages, as well as an overall labor shortage. All of this is the case while we have unprecedented demand for goods all across the board," he said.

"The quickest we are going back to normal is when seasonal demand declines and supply chains have a chance to get back to some equilibrium. There are short-term remedies, such as addressing choke-points at the ports and relaxing rules around hours of service."

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