ORANGE COUNTY, Fla. — The supply-chain crisis off California’s coast is slowing not just consumer goods, but critical supplies needed in Central Florida manufacturing.


What You Need To Know

  • Supply-chain issues causing delays, higher costs for manufacturers

  • As a result, prices for consumers are going up, too

  • Part of the reason is goods are waiting on ships to be off-loaded

  • Prices will dip in future, but to a "new normal," manufacturing executive says

President Joe Biden held a virtual roundtable Wednesday with a long list of administration officials and business leaders to discuss the urgency to pick up operations at ports in Southern California as one effort to get cargo ships moving again. 

Dozens of ships are anchored off California’s coast, waiting days and weeks at a time for cargo to be off-loaded.

In Orange County, manufacturers are among those waiting for supplies from overseas that will allow them to continue operations.

“We’re seeing items we could normally see in a week or getting six weeks, eight weeks, 13 weeks,” said Ray Aguerrevere, vice president/general manager of Custom Metal Designs Inc., in Oakland. “That creates an impact for manufacturers to time their operations and logistics.” 

Aguerrevere, who serves as president of the Board of Manufacturers Association of Central Florida and chair of the board of Florida Makes, said it is a ripple effect across industries and households. 

Custom Metal Designs Inc. builds conveyer-based machines that companies use to package their products, ranging from detergents to beverages to pharmaceuticals. Those products end up on shelves of major retailers across the United States, but getting them to stores has been slow because of the supply-chain delays.

In its western Orange County facility, Aguerrevere showed Spectrum News the machines that remain partially built — waiting for the arrival of components and electronics needed to finish the build.

The challenge, however, does not end there, nor do the impacts.

While Custom Metal Designs Inc. waits for parts to finish a build, it is delayed in delivering the machine to its customer, who is then delayed in using the machine to produce their merchandise to sell, which means a shortage of that product for customers to buy.

Shorter supply and supply delays are also leading to increases in pricing.

“At minimum, goods are going to cost you more,” Aguerrevere said. “Wages are increasing, logistical costs are increasing, what it costs to bring a barge overseas to America has increased substantially over the last year. That’s ultimately going to affect the cost consumers are going to pay for everyday goods.”

Aguerrevere predicts prices seen now will drop eventually, but likely to a “new normal” pricing.

Many manufacturers, he said, are working to complete products with a contractually fixed price. However, in the time between selling an item for one price and now, the costs for materials such as steel have gone up considerably.

As a result, many manufacturers are having to balance increased costs with how to pass them on to customers, or they are absorbing those costs.

The demands, though, are rewarding in some ways.

Aguerrevere said this year will likely mark one of the highest-grossing years for his nearly 50-year-old company. He is now trying to hire more workers, including welders, as the company expands its workforce to keep up with demand.

“Global logistics affects everything … and everybody,” Aguerrevere said.

As a member of Florida Makes and Manufacturers Association of Central Florida, Aguerrevere said the organizations also provide advisers and team members to help local manufacturers navigate the supply-chain troubles.

In some cases, that includes finding alternative sourcing options.