Endless “sold out” shelves… not again. A baby-formula crisis is rippling through the US, forcing parents to ration supplies or drive hours in search of inventory. Over 40% of formula is out of stock nationwide, up 10% from a month ago. Now top formula supplier Abbott Labs says it could take until July to get the product back on shelves. How we got here:
Pandemic stockpiles… The plant closure is just part of the story. Worried parents snatched up formula in droves in the early days of Covid. As they worked through their supplies, demand plummeted and formula makers slashed production. Inventory still hasn’t kept up with a resurgence in demand (#supplychain, #laborshortages). Now retailers from Target to CVS are capping how much formula shoppers can buy. On top of that:
This isn’t just a production issue… it’s a policy issue. The pandemic caused both the Trump and the Biden administrations to emphasize domestic manufacturing (aka: on-shoring). But the worsening formula shortage illustrates the pitfalls of limiting imports of basic necessities. Washington appears to be listening: the White House said yesterday it’s working to reduce red tape and make it easier to import formula.