The consumer spending crash is coming: Is your supply chain ready?

The reality of tariffs' impact in the US is undeniable, especially how they directly influence inflation and the paychecks for everyone. Since 2020, inflation has risen by 26%, even before tariffs took effect. Economists observe that retail spending in the US continues to grow despite rising prices for everyday goods and services.

How is this sustainable? The numbers reveal that savings are decreasing as consumers prioritize immediate gratification over future security. This tendency affects all service costs across categories. People are willing to spend despite increasing prices, but eventually, spending will slow and become more focused on essentials rather than luxury items. Looking ahead, reduced savings might mean future consumer behavior shifts toward essentials and necessities.

A key challenge is maintaining the gap between rising costs and consumer purchasing power, especially with AI and robotics reducing fixed costs and boosting productivity. Rising logistics costs, the second-largest inflation driver in the past five years, are critical. Efficient logistics—implemented through telemetrics, routing, warehouse improvements, and energy management—is vital to controlling expenses. The high energy demands of data centers add to cost pressures.

Despite these challenges, innovation still thrives: businesses continuously find ways to cut costs and stay operational. At Maxiloda, we contribute by increasing load capacities, reducing costs, and boosting flexibility with unmatched productivity across sectors like food, auto, and pharma. Visit www.maxiloda.com or request a demonstration to see real-life data collection and ROI figures. With Maxiloda, you can lead the transformation instead of being left behind.