The Small Business Inventory Dilemma And How To Get Out Of It

Workers managing inventory in a modern warehouse

Many sectors in the U.S. economy right now are experiencing bloated levels of inventory as the supply chain has caught up and demand in spots has cooled, leading to a bit of a perfect storm. Seemingly long forgotten are the persistent supply chain bottlenecks that disrupted the flow of just about every good resulting from the pandemic.

The tide has now swung in the other direction. The supply chain side has not only caught up but is even getting ahead, meaning more and more goods are reaching U.S. warehouses. Labor tightness is still an issue, so the processing of inventory, once it reaches warehouses, has been slow. Coupled with softening demand (especially in the retail sector), businesses are now finding themselves in a new quandary.