The Supply Chain and the California Dilemma

The global supply chain system is the relationship between companies that are needed to move products from manufacturers to consumers and business end-users. Huge supply chain shortages have taken place as the result of pandemic lockdowns, causing a scarcity of some products and inflation.
Initial supply chain issues started in China as plants that build parts or assemble products were shut down as a response to COVID-19. Similar disruptions soon spread throughout the world, affecting manufacturers and companies that ship, store and deliver products. The shortages, as well as the heavy demand placed on shipping, have caused freight costs to skyrocket.
Over the past many months, much has been done by governments and businesses to restore pieces of the global supply chain leading many experts to believe we will see improvements later this year in major affected industries like semiconductors, automobiles, retail, manufacturing, restaurants, and food. However, a recent decision by the US Supreme Court could cause a major setback in the supply chain recovery here in California, which might spread to other states as well.
California Trucking Bill and the Supply Chain Setback
An important cog in the California supply chain is independent truckers. Just a few days prior to preparing this article, the US Supreme Court decided not to review California Assembly Bill 5, a Democrat partisan bill that was supported by just one Republican and signed into law by Governor Gavin Newsom. This bill removed the ability of 70,000 owner-operated truckers to continue to operate as independent contractors and took effect beginning in early July. Although some trucking businesses have been preparing for this, this bill will significantly intensify the driver shortage that already exists. Many truckers will be forced to leave California and others will stop serving the state.
The question becomes to what degree this will impact California businesses and households. We do not advocate ringing an alarm bell, however, it might not be a bad idea to stock up on essential items until this matter is resolved as we could see many empty store shelves.
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