{"id":945744,"date":"2021-10-31T14:14:21","date_gmt":"2021-10-31T18:14:21","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=945744"},"modified":"2021-10-31T14:14:24","modified_gmt":"2021-10-31T18:14:24","slug":"supply-chain-issues-lead-brands-to-cut-advertising-spend","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supply-chain-issues-lead-brands-to-cut-advertising-spend\/","title":{"rendered":"Supply Chain Issues Lead Brands To Cut Advertising Spend"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsupply-chain-issues-lead-brands-to-cut-advertising-spend%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=945744&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>As businesses struggle to meet demand amid economy-wide supply chain bottlenecks, many are cutting their advertising budgets.<\/p>\n<p>Shipping vessels from abroad are currently <a href=\"https:\/\/www.dailywire.com\/news\/california-truckers-forced-to-dump-shipping-containers-in-nearby-neighborhoods-amid-supply-chain-crisis\">idling<\/a> outside the Los Angeles and Long Beach ports \u2014 which handle 40% of all shipping traffic entering the United States \u2014 as they wait to enter and unload. The bottlenecks \u2014 caused by COVID-19 lockdowns in Asia and labor shortages in the United States \u2014 are leading to shortages in consumer goods.<\/p>\n<p>Many firms are therefore slashing their advertising spend as they struggle to fulfill existing orders. Based on recent earnings calls, <a href=\"https:\/\/www.wsj.com\/articles\/supply-chain-crisis-has-companies-asking-should-we-still-advertise-11635599386?mod=hp_lista_pos2\">The Wall Street Journal<\/a> explained:<\/p>\n<p>Chocolate giant Hershey Co. and household-goods manufacturers Kimberly-Clark Corp. and Church &amp; Dwight Co. in recent days said they cut back on ad and marketing spending in the third quarter because of supply-chain issues.<\/p>\n<p>\u201cThe supply-chain challenges just wouldn\u2019t enable us to be able to meet further demand that we would create through our very impactful advertising,\u201d Hershey Co. Chief Executive Michele Buck said on an investor call. \u201cIt just didn\u2019t make sense.\u201d<\/p>\n<p>Kimberly-Clark Chief Financial Officer Maria Henry said her company, which makes Kleenex facial tissues and Huggies diapers, had more demand than it could meet at the moment. \u201cWe have challenges getting the product to our customers,\u201d she said on an investor call.<\/p>\n<p>As <a href=\"https:\/\/www.dailywire.com\/news\/toilet-paper-manufacturer-aiming-to-raise-prices-for-second-time-this-year-due-to-high-inflation\">The Daily Wire<\/a> previously reported, Kimberly-Clark\u2019s year-over-year revenue growth in the third quarter was 7%, while net income dipped by 1%. As a result, they were forced to hike prices for the second time this year.<\/p>\n<p>\u201cOur earnings were negatively impacted by significant inflation and supply chain disruptions that increased our costs beyond what we anticipated,\u201d explained Kimberly-Clark chief executive Mike Hsu. \u201cWe are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly.\u201d<\/p>\n<p>In response to the logistics crisis, Rep. Chip Roy (R-TX) <a href=\"https:\/\/www.dailywire.com\/news\/chip-roy-introduces-beat-china-act-to-combat-supply-chain-crisis\">introduced<\/a> the \u201cBEAT CHINA Act\u201d \u2014 legislation that would \u201cbolster domestic manufacturing and reduce America\u2019s overdependence on global supply chains.\u201d<\/p>\n<p>\u201cAs long as we depend on China and the rest of the world to keep our shelves stocked, our economic prosperity, our political liberty, and our national security are all in grave danger,\u201d read a statement from the lawmaker\u2019s office. \u201cRelying too heavily on supply chains based in other countries is a recipe for disaster \u2014 especially when the governments of those countries wish to destroy our way of life, as<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As businesses struggle to meet demand amid economy-wide supply chain bottlenecks, many are cutting their advertising budgets.Shipping vessels from abroad are currently idling outside the Los Angeles and Long Beach ports \u2014 which handle 40% of all shipping traffic entering the United States \u2014 as they wait to enter and unload. The bottlenecks \u2014 caused by COVID-19 lockdowns in Asia and labor shortages in the United States \u2014 are leading to shortages in consumer goods.Many firms are therefore slashing their advertising spend as they struggle to fulfill existing orders. Based on recent earnings calls, The Wall Street Journal explained:Chocolate giant Hershey Co. and household-goods manufacturers Kimberly-Clark Corp. and Church &#038; Dwight Co. in recent days said they cut back on ad and marketing spending in the third quarter because of supply-chain issues.\u201cThe supply-chain challenges just wouldn\u2019t enable us to be able to meet further demand that we would create through our very impactful advertising,\u201d Hershey Co. Chief Executive Michele Buck said on an investor call. \u201cIt just didn\u2019t make sense.\u201dKimberly-Clark Chief Financial Officer Maria Henry said her company, which makes Kleenex facial tissues and Huggies diapers, had more demand than it could meet at the moment. \u201cWe have challenges getting the product to our customers,\u201d she said on an investor call.As The Daily Wire previously reported, Kimberly-Clark\u2019s year-over-year revenue growth in the third quarter was 7%, while net income dipped by 1%. As a result, they were forced to hike prices for the second time this year.\u201cOur earnings were negatively impacted by significant inflation and supply chain disruptions that increased our costs beyond what we anticipated,\u201d explained Kimberly-Clark chief executive Mike Hsu. \u201cWe are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly.\u201dIn response to the logistics crisis, Rep. Chip Roy (R-TX) introduced the \u201cBEAT CHINA Act\u201d \u2014 legislation that would \u201cbolster domestic manufacturing and reduce America\u2019s overdependence on global supply chains.\u201d\u201cAs long as we depend on China and the rest of the world to keep our shelves stocked, our economic prosperity, our political liberty, and our national security are all in grave danger,\u201d read a statement from the lawmaker\u2019s office. \u201cRelying too heavily on supply chains based in other countries is a recipe for disaster \u2014 especially when the governments of those countries wish to destroy our way of life, as does the Chinese Communist Party.\u201d\u201cWe must take bold action, consistent with the spirit of free enterprise, to reduce our dependence on foreign supply chains. The American people deserve an economy that can provide for itself; that\u2019s why I am proud to reintroduce the BEAT CHINA Act, which would extend tax advantages to any foreign manufacturer that moves its production to the U.S.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-945744","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/945744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=945744"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/945744\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=945744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=945744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=945744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}