Global supply chain issues hit Orange County small businesses

Some local businesses, like Christmas tree lots, are feeling the devastating effects of global supply chain issues. Photos by MAYA BRAUNWARTH, Staff Photographer

Dolly, an employee at Morning Lavender Boutique and Cafe in Tustin, and Vanessa, the online tree sales coordinator at the Tanaka Farms Christmas tree lot, both declined to provide last names, because they did not feel comfortable having their last names connected to their employers. Throughout the story, they are identified by first name only.

Global supply chain issues are affecting the U.S. economy and consumers during the peak holiday and shopping season, and Orange County small businesses have also started to feel the effects of these shortages.

Inflation prices have surged to the highest since 1982, in addition to supply chain issues that are sweeping the nation. The ports of Los Angeles and Long Beach are currently facing unprecedented gridlock with shortages of cargo ships and a lack of workers. 

Dolly, who has been working at Morning Lavender Boutique and Cafe in Tustin for nearly three years, explained to The Panther how shipping delays have negatively impacted the store’s product supply.

“We haven't been getting our shipments in on time, and a lot of our sizes are missing,” Dolly said. “Shipping delays have been an issue. A lot of our unique sizes have been low in quantity, so when customers come in for their favorite items, we unfortunately don’t have them because of the whole issue going on right now. They're upset.” 

Supplies, ingredients and materials that small businesses rely on to function are becoming more difficult to find, especially since some owners cannot order in bulk or in advance like larger companies.

For example, the price of Christmas trees has increased dramatically, according to Vanessa, the online tree sales coordinator at the Tanaka Farms Christmas tree lot.

While Vanessa said the rise in price is directly correlated to the lack of supply, the issue has also been affected by ongoing droughts and increased wildfires in Oregon and Washington. 

With many tree growers going out of business and a short supply of long-haul truckers, Christmas trees are increasingly difficult for sellers to import.

“In years past, we've definitely had really tall trees, sometimes even up to like 14 feet,” Vanessa said. “This year, the tallest that we had was maybe 11 (feet).”

The average Christmas tree takes about 12 years to grow, but the U.S. was in a recession back in 2009, and many tree growers went out of business. Now, customers are still feeling the impact of the economic hardship a dozen years later, in addition to the ongoing financial strain of the COVID-19 pandemic.

Today, tree farmers are also having to pay more to ship trees to other parts of the country, and just like the trees, long-haul truckers are in short supply.

Similar issues are being faced across several different businesses seeking imported products, including local restaurants and retail stores. 

“It's definitely been a struggle for us,” said Elizabeth Hernandez, the 25-year owner of Two’s Company Cafe in Orange. “(There’s) nothing on the shelves, (and) we had to take things off the menu,” Hernandez said. “Even just our cups — we can’t even find those right now, so we have to buy more expensive cups. We’re trying, but it's definitely new for us and for anyone else who owns a business or restaurant. It's been challenging, but we’re still here.”

Hernandez said the restaurant didn’t have chips for two weeks because they couldn’t find any to purchase.

“It was so weird,” Hernandez said. “(But) we know everyone’s going through it.”

President Joe Biden argued at a Dec. 19 meeting that supply chain issues did not affect the holiday season anywhere near as drastically as previously anticipated. But just a few weeks earlier, Biden had said “only Santa Claus” can guarantee American consumers’ gifts arrive on time.

"Earlier this fall we heard a lot of dire warnings about supply chain problems leading to a crisis around the holidays, so we acted," Biden said. "We brought together business and labor leaders to solve problems and the much predicted crisis didn't occur. Packages are moving. Gifts are being delivered. Shelves are not empty."