In this post, we'd like to update you on:
- Inventory challenges
- Upcoming price increases in Fall
- Recommendations to buy now, not to wait
When Covid-19 hit the US last Spring we immediately scaled back our production for the second half of 2020. We had just received a lot of inventory and like all businesses, the next 6 months looked uncertain. Then demand started surging in April and we spent the rest of the year scrambling to produce more products. We were fortunate to have a 100% direct to consumer model and our only issue was having enough inventory.
2021 has been filled with new challenges as the US and entire global supply chain struggles. There has been a large demand for all raw materials after the 2020 slowdown. This has driven up the cost for all our fabrics and trims. Labor costs are rising in the US where all our shirts and base liners are produced. Shipping costs for our fabric from Japan and Taiwan are up 200 – 300%. Our headwear and fabric production lead times have increased by 2 – 3 months.
We believe that many of these surges in raw materials and the import freight delays will last throughout 2021. That sometime in early 2022 the global consumer demand for all products will go back to normal. This should bring down the cost of freight and raw materials. US wages are going to continue to increase to keep pace with the inflation seen across the US.
As a result, we do expect to start running low on inventory starting in July through October. A good part of our Fall production will be delayed until October. We are doing our best to fill holes with small monthly restock releases. We will probably be out of most of our headwear for Fall and Holiday. If there is something you need for an upcoming race that is in stock, we recommend not to wait and buy it now.
We have some amazing new products launching for Fall and Holiday, along with more exciting collabs for Holiday and Spring. Our target release for Fall was early September and unfortunately some products will be delayed until mid or late October. We have done our best to absorb the cost increases for materials, freight, and labor. Although we will reach a point in Fall when prices on some products will need to increase.
We really want to thank all of you for your support, love, and feedback. We have had some unbelievable growth through these tough times. Being able to interact and serve you all directly is truly a gift. You inspire us to do better with your passion and enthusiasm for running.
Have a wonderful summer!
Scott, Erich, and Floris
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1件のコメント
Path Projects gear is quality gear. I greatly appreciated your story on the Choose to Endure Podcast. I have Sykes and Graves shorts and liners. I have a wadi top and a Pyrenees hoodie. I look forward to some hot weather sleeves.
Thank you for your dedication to the runner.