SUMMARY: Supply chain volatility is lessening, bringing lower raw material costs and lower rates for ocean container freight. But new factors of labor unrest and equipment shortages threaten a sustained recovery. Inflation remains at 40-year highs ensuring that Fed increases will come and fueling fear that the economy will stall despite near-full employment.
▪ Mirroring general industry trends, 511 Foodservice continues to expedite supplies into its North American warehouse network at a record pace, receiving 35% more container loads of supply in August alone than its normal monthly average. ▪ US employment rate is hovering around 3.7%, a range considered to be full-employment. However, in Canada, unemployment rates have increased three straight months, jumping 5.4% in August in a sign that aggressive rate hikes by Bank of Canada may be starting to cool the economy. (Bloomberg, US Bureau of Labor Statistics) ▪ Managing price actively has become necessary, and generally adopted as a norm for maintaining profitability and business survival by suppliers, distributors and operators alike, throughout the foodservice industry. ▪ Revising and updating value propositions may help minimize losses for both operators and distributors, both of whom must stay flexible and envision product lines and service offerings as broadly as their customers and patrons deem attractive. (Technomic)
511 Foodservice Remains Your Steadfast Partner through the Tough Months Ahead and Beyond!
• 511 ’s breadth of product line and investment in North American manufacturing infrastructure helps us ensure supply continuity of essential
products to restaurant operators and distributor customers, as well as sustainable replacement options for legislation-impacted supply items.
• 511 continues to develop near-shore and on-shore manufacturing capabilities that will reduce supply chain risk for our customers and ensure
timely final-mile resupply to your operation.
• We are proud to serve your business and will continue making investments in our people and systems that create value for our customers. Our
focus on distribution network performance is paying off for customers as our fill rate and ship-complete rates steadily have risen to new highs in
each consecutive month this year.
• Watch for periodic promotion of limited-time deals on overstock and discontinued products as 511 adapts its product portfolio to meet evolving
• REMINDER: Chinese New Year 2023 takes place January 21 – 27 … plan your ordering, now.
Q4 2022 Market Update
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