Crap, now I have my fingers crossed that my 33 yr-old upright freezer will keep laboring on. My own fault for not replacing it last year when I should have, sigh:
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Trying to buy a freezer? National appliance shortage has many on waiting lists
Daily Tribune: July 19, 2020
The effects of the COVID-19 shutdowns are now reverberating across the appliance manufacturing industry. Residents are reporting that refrigerators, freezers, washers and dryers are out of stock with a months-long wait for orders across the region. Some are finding orders made in spring being cancelled as retailers grapple with the lack of supply. Others are being told outright that it’s going to take much longer than usual to order and install appliances.
“It’s like coming to work with handcuffs on,” David Tarpley, a sales representative with Sargent Appliance in Clinton Township, said. “We had someone come in this weekend who wanted a white side-by-side fridge the same day. We laughed. If we ordered that today, it might be here by the end of August.”
Freezers especially have seen higher demand since the beginning of the pandemic as consumers look to keep stocked up on food at home to avoid frequent grocery store trips. The demand for refrigerators, washers and dryers is about the same as always.
Martin Hartunian, CEO of ABC Warehouse said the coronavirus’ affect on the supply chain is making it more difficult for retailers to keep orders filled.
“The wire harnesses, switches, electrical components and dials are things that are manufactured overseas or in Mexico, which has slowed the production process down,” Hartunian said. “GE, Whirlpool, LG and Samsung do have some assembly of appliances in the U.S., but with COVID-19, they’ve had to rework their production lines which has led to a drop in yield.”
ABC Warehouse has 44 locations across Michigan, Ohio and Indiana. Hartunian said companies like his are in a sort of sweet-spot when it comes to ordering merchandise. “A thousand pieces for a company with 5,000 stores doesn’t mean anything, they’re having a bigger problem getting that kind of quantity. Every couple of weeks I’m seeing 100 freezers come in, so I can get 30 to 100 orders filled a little quicker,” he said.
Yet Hartunian is still expecting everyone will see more shortages in the coming months. Order volume is slowly rising as people return to work. He, along with Tarpley at Sargent’s, has seen countless new customers being recommended to smaller retailers for appliances from big box stores like Lowe’s and Home Depot.
Representatives from Lowe’s did not immediately reply for comment on the issue. A communications representative from Home Depot stated that the company’s merchandising and supply chain teams are “working hard to replenish in-demand items, like some appliances, as quickly as possible.”
For Jason Lee, owner of Noble Appliance, this is a moment he’s been preparing for since March. The business stocks about 8,000 appliances across its six locations. In one of the first weeks of the COVID-19 shutdown, he sold 170 freezers and noticed quickly that more stock would be needed — and fast.
Noble purchases its merchandise on the secondary market, or business-to-business as a B-Stock supplier. “We noticed in the first two-weeks of the shutdown that there were going to be major supply chain issues. We noticed those who would normally buy at full-retail were willing to pay 25% to 30% less to get an open box product,” Lee said.
Noble has also had many more walk-in customers than usual looking for shorter wait times on orders. He said for now, he isn’t struggling with the 7,800 appliances he still has in stock.
“We had a lot of orders in the very beginning that were larger than what we’d normally place, only to find out later that everything was backed up because we were not the only ones trying to stock up,” Lee said. “Now, we’re hoping to weather the storm and survive.”
