want customers to be surprised by that. We’re better off telling them now so they can plan for it.”


Wasserstrom credits his company’s long-standing, mutually beneficial manufacturer relationships with helping to minimize at least some of the negative impacts of the supply chain disruption. For example, he knows of several suppliers that are reserving inventory for The Wasserstrom Co., based on those strong relationships. These suppliers will hold the equipment based on a PO even if the dealer isn’t quite ready to place the order yet.


“We’ve always been fair to our manufacturers. We don’t beat them up on price or try to get extra discounts when we don’t need them,” he adds. “We’re feeling some of those dividends now.”


SUPPORTING A MASS RESTART


Similar to Clark and Wasserstrom, Fred Singer began seeing a litany of supply chain disruptions just as his company’s customer base kicked back into gear in 2021. “Everyone is restarting their operations and/ or gearing up facilities that haven’t been operating at full capacity,” says Singer, president of Singer Equipment Co. “This creates a need for new equipment and help figuring out how to get existing equipment working again.”


Many foodservice operators are also rethinking their setups and adjusting to the “new normal” dining environment, where buffet lines and indoor dining are giving way to drive-through operations, outdoor seating and ghost kitchens. To keep


up with the demand, Singer says his company is hiring new people and increasing its stock levels. It’s also keeping a close eye on lead times, with walk-in coolers, bar equipment and fryers topping the list of “hard to find” items right now.


To keep customers updated, Singer Equipment produces and distributes an email newsletter that covers current market conditions, lead times, price changes and tips for managing in this resource- constrained environment. “We’re talking about it with our customers nonstop,” says Singer, whose dealership has also replaced just in time (JIT) inventory strategies – which only work when you actually know what manufacturers’ lead times are – with a more inventory- heavy approach.


“At this point, we have no idea what demand is and any expectations around manufacturer lead times have gone out the window,” Singer says. “The only thing you can do if you want to take care of your customers is increase your inventory levels.”


NO LIGHT AT THE END OF THE TUNNEL YET


Looking ahead, Singer doesn’t see any relief in sight for at least the next three months.


Factoring in the current supply chain disruptions, high customer demand and the labor market conditions, he doesn’t expect any “meaningful improvement” by the end of the year.


Clark maintains a similar position when asked for his future insights. “We’re expecting a lot more of the same,” he says. “We think demand


“


At this point, our main goal is to get timely and accurate information from our suppliers. And while that may not necessarily translate into a shorter lead time, it does help us understand where we stand.


Gene Clark Chief Executive Officer Clark Associates


”


will remain fairly strong and supply will remain fairly dysfunctional. It would be great if, at some point in 2022, we can say, ‘Ah, it’s back to normal or at least more predictable.’ Of course, you have to watch what you wish for because that could also indicate a potential soft spot in the economy.”


Asked to share his prognosis for the next three-to-six months, Wasserstrom says at best the environment will stabilize and stay where it is now. “The reality is that there’s a good chance we’re going to get worse before we get better,” he says. “By and large, it could be spring or summer of 2022 before we start to see any type of stabilization.”


Special Issue 2021 13


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