The post pandemic economy It continues to give surprises and it is that the demand for employees does not find enough supply to cover it. This contributes to a increase in wages and prices. The American market is upside down, according to Myles Udland at Yahoo Finance.
In this environment, people talk more often in terms of inflation, wage growth and the sustainability of these trends. However, large corporations have now entered what the Whirlpool (WHR) CEO Marc Bitzer, calls an “upside down” world.
“The term I use internally is that we live in an upside-down world,” Bitzer told Yahoo Finance Live on Thursday, when asked about how demand is affecting Whirlpool’s business.
“Practically all of us grew up in an environment where there was excess supply and demand had to be created. Right now, it’s the opposite. There is a excess demand and supply must be created“he added.
Coming out of the last recession, the slow recovery was ultimately characterized by an excess of supply and a lack of demand. There were too many over-educated workers looking for too few jobs, too many households with too few qualified buyers, and so on. This recovery, of course, is almost the exact opposite.
And so, while a streamlined model from a company like Whirlpool (one might have previously called it a marketing company with an added appliance manufacturer), the company has now turned its head in an ongoing race to make enough mixers and mixers. standing up, ”says Udland.
Bitzer mentioned that at this time of year, the company typically saw a prospective buyer waiting to buy a new dishwasher, until the expected Labor Day or Black Friday sale came in.
“Instead, consumers are shelling out early, and often, on new appliances, knowing that a product is likely to be out of date for months (a waiting period that its non-dishwasher author knows all too well),” Udland notes.
As for the future of this demand environment, Bitzer has noted that the pre-pandemic environment for its business will not return anytime soon. “Think of yourself and think of your friends,” Bitzer said. “People spend much more time at home compared to the office or other facilities and that only drives the consumption of appliances,” he explained.
“You just use the washing machine much more, you use the oven much more … Households have cash available in their checking accounts,” he added.
In the words of the CEo, “then you have disposable income, a general reorientation of the consumer towards home, which will not disappear … People simply spend more time at home, they are willing to invest more at home because they cannot” invest in travel international … and that is what we are seeing in all areas and we do not see that disappear very quickly “.