The pandemic outbreak and Chinese government measures used to curb the spread have resulted in logistics and transport disruption in and out of China.

As U.S. port congestion has eased and supply chains have begun to unravel, U.S. corporations have increased their inventory levels.

On a monthly basis, data from Trading Economics showed that wholesale inventories in the United States increased 2.5% in February month-over-month to 818.2 billion dollars, up from an earlier estimate of 2.1%.
Wholesale inventories increased 19.9% year over year in February, exceeding an earlier reading of 19.4%.

According to Reuters, Kent International Inc. was unable to provide Walmart Inc. and other major U.S. retailers with enough Chinese-made bicycles throughout the pandemic.

However, the corporation has built up a 10-week stockpile of goods at the warehouses in California, South Carolina, and New Jersey, compared to the pre-COVID standard of four to six weeks.

Reuters reported that since inflation-adjusted inventories remain below pre-pandemic levels, most economists predict that stockpiles will continue to rise.

Don DiCostanzo, CEO of Pedego Electric Bikes, said he began upgrading inventories a year ago and established a second warehouse near his office in California in February to handle the backlog.

Moreover, some companies have seized the opportunity to refill their shelves quickly.

The amount of inventory for Automatic Pool Covers Inc. in Indiana is currently three times as much as it was before the outbreak. The company’s CEO, Michael Shebek, said he was able to do so by increasing the number of suppliers he relied on for supplies and parts.

Kent’s CEO Arnold Kamler said last year he was “scrambling for bicycles like they were gold – but now, we’re in a more normal cycle.”

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