Refrigerators are the new toilet paper
October 2, 2020 by DarcieAt the beginning of the pandemic, toilet paper began flying off the shelves and almost overnight there was none to be found in any store at any price. It took months for that product, as well as paper towels and most antibacterial cleaning supplies, to be back in stock on a consistent basis. Even now, more than six months after the first stay at home proclamations, the paper products aisle in my local supermarket is never more than half full. Now there is another shortage affecting US consumers, and possibly those in other countries as well: refrigerators and other major appliances.
The shortage is the result of several factors. First, people began to hoard food and needed more or larger freezers. Once freezers were out of stock, consumers began turning to refrigerators with freezers, buying a second fridge for the garage or basement. Manufacturers, who have to predict demand months in advance, did not anticipate a run on major appliances because their bet was that people would be hesitant to make expensive purchases in a time of economic uncertainty.
As it turns out, however, the particular circumstances of this situation didn’t fit the usual mold of consumer pullback in a recession. That is because with everyone staying home and cooking more, appliances began to break down more frequently. Several of my friends replaced their failing dishwashers, and it is likely that the demise was accelerated by a significant increase in usage. People also turned their focus away from activities like traveling and attending shows, and instead tackled remodeling projects. Who wants old appliances when you have new cabinets, walls, and floors?
Another element of the shortage is the closure of manufacturing facilities due to Covid-19 outbreaks. Many factories were shuttered for weeks or months, or were operating at a reduced capacity. Combine reduced output with increased demand, and you have all the conditions for a paucity of appliances available to consumers. Although all appliances are affected, refrigerators and freezers seem to be the most scarce at the moment.
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