Supply chain issues continue to hamper local businesses

Some businesses in Bigfork are feeling the effects of a national supply chain problem that was born out of the COVID-19 pandemic.

Adorned owner Melina Frechette bought her business last spring saying she loves being able to offer clothes for women and children at an affordable price point in downtown Bigfork.

While her business sees a lot of tourists in the summertime, she wants to mainly cater to the locals and takes recommendations based on what her customers tell her they want. But, some of the items they requested are taking months to arrive.

“Booties for ladies and juniors — they both kept selling out. I tried to order them in June, then again in August and it just said ‘sold out, can’t ship it out,’ so I was like, okay, I guess I’m not going to carry booties this fall cause everyone asks for them but I can’t bring them in,” Frechette said.

Bigfork businesses aren’t alone when it comes to supply chain issues. The Associated Press reported in November of last year that suppliers haven’t been able to keep up with the robust demand for goods since consumer spending skyrocketed after the most recent recession. Many businesses resort to stockpiling supplies, which exacerbates the issue, but provides a safety net for some as the ripple effects of the pandemic continue to create a rocky environment for businesses to operate in.

For Frechette’s business one of the challenging aspects has been as a retail store that items she ordered nine months ago might not be what’s considered in-style by the time they arrive. She said those booties she ordered at Christmas will still be popular with her customers when they are put on the shelves in spring, but she worries about some of her future orders.

Sending online orders to customers has also been problematic because the cost of shipping has become prohibitive. Frechette said she charges a flat $8 for shipping, which is a cost she usually has to eat.

“I’m not making much if I’m doing online orders, just because the cost of shipping is more than eight dollars to ship things out. I’m leaving it at eight dollars right now just to make it fair for everyone, because I don’t really want to charge them the real price that it is,” Frechette said.

She said it’s been challenging to keep up with what her customers want when her orders don’t arrive on time, but she persists and tries to keep affordable, fashionable clothes on the rack.

Just across the bay, Whistling Andy Distillery is grappling with its own supply chain issues. The oldest distillery in Montana produces spirits of all kinds, but lately, they’ve been having a hard time finding almost every element of their production.

Head Distiller Gabe Spencer said one of the biggest issues was their bourbon barrels, which is the core of everything they make. The distillery sources its barrels from Louisville, Kentucky, using the same company for almost 12 years.

“Over those years there’s been supply issues with barrels, and barrel shortages, cause there’s just not a ton of manufacturers for barrels, so the demand was high… then you factor in the demand with COVID and the cost of oak and wood, everything is getting delayed,” he said. “So we have to forecast as far out as 2024.”

Spencer said he’s watched the distillery business boom across the country since Whistling Andy opened its doors more than a decade ago. Currently, there are close to 2,000 distilleries across the country and when Whistling Andy opened there were less than 300, he noted.

This rise in demand also contributes to the recent supply chain issues. He said getting their signature bottles has been difficult — feeling the strain of an unpredictable supplier as soon as the pandemic started.

“So for that whole year of 2020, and especially now, to get glass is very hard. We used to get all of our glass made in America, out of Missouri, but now the demand is so high…they only make so many bottles a quarter, so they’re all getting pre-bought by big brands, so little brands like us are left out in the dust,” Spencer said.

They were able to find different bottles from United Bottle and Packaging out of Canada. He said shipping has become costly, more than double what it was previously.

Even down to the corks in their bottles, Spencer said they have to forecast months in advance to get what they need. There’s also been issues with getting labels for the bottles because there wasn’t enough supply of the adhesive on the back of the labels, and sourcing carboard boxes has been difficult.

“It used to be that you could order something and it would arrive in three weeks, now it’s three months,” he said. “It’s like a big game, everyday, you have to check what levels we have and make sure we’re forecasting it.”

This means he has gotten into the habit of ordering heavy on raw materials. Ordering ahead can be quite costly, and they’ve recently ramped up production as well.

“More corks, more barrels, more cardboard, more glass, more labels. So, there’s a lot more money actually going into production, the raw ingredients, and then shipping costs. It’s all adding up,” Spencer said.

Spencer said the cost of these raw materials is a huge burden — having to front money for an order just to get it in ahead of the next business, sometimes being beaten out by larger brands. But, he said he will continue to order in advance, looking towards the growth of the distillery, which he is hopeful for as he forecasts barrel orders two years in advance.