Digital billboard delivery times have lengthened. Here’s what manufacturers tell Billboard Insider:
- Delivery times are as much as 6-12 weeks. This is up from a normal 2-4 week delivery cycle. There is strong demand for digital billboards.
- Ocean shipping costs have risen dramatically. From $4,000 per container to $20,000 per container. Airfreight is up a similar amount. Sometimes container space can’t be found. Domestic freight is insane.
- The labor shortage is making it hard to hire production personnel.
- Chips and LED costs have increased. The digital billboard manufacturers have been trying to avoid price increase by drawing down excess inventory.
Insider’s take: Insider expects the runoff of extra Covid unemployment benefits in Sept will ease the labor shortage. There will be pricing pressures on digital billboards until freight, chip and LED costs come down soon.
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I don’t think this is true of all manufacturers. Those who purchase inventory overseas would be impacted by some of these points. Those who produce their products mainly in the USA, would not be so dependent on foreign suppliers.
Also, unless you dismissed your staff as a result of COVID-19, you shouldn’t have a labor shortage in anyway as a result of unemployment benefits.