Hoarding is not a good thing. It seems smart at first blush to buy early and buy extra, but it harms dozens of supply chain vendors and requires distended investment to bring inventory levels back to normal.
After a few decades ‘hoarding’ cheap goods from China, the negative effects may be coming home. Mark Kleinman writing for The Telegraph warns that China wants to ruin Christmas this year by dramatically lifting prices.
Citing price increases in the DIY tools sector, Mark reveals that as China’s modernization increases its costs, manufacturers are asking for higher prices across the board.
But don’t rush out to buy Christmas presents. Save your cash for next year. Costs are rising worldwide.
An interesting sidebar in this story is China’s effort to save production costs by moving factories to Mexico!