Display MoreWell... I think it kinda goes like this:
- Pandemic forces people to work from home and school from home
- Demand for electronic equipment (computers, TV's, cameras, etc, etc, etc) goes out the roof
- Chip demand (both large processors and popcorn parts alike) goes up beyond factory ability to supply
- New products can't be built to satisfy demand
- Demand for used products increase
- Used product prices increase
I work in electronics and for the last 3 years it has been the new normal that volume part orders have a lead time of >1 year .... and then sometimes you don't even get them when they promised.
New prices are being forced up as well as the demand for chips allowed the chip OEM's to raise their prices so that pretty much everything goes up in price.
Oil prices in the US aren't in a horrible way anymore, but in Europe, the follow-on effects of the war and reliance on Russian oil/gas has had a big effect on everything there since transportation costs are linked to fuel prices which makes everything go up. Note: The shift to EV's SHOULD eventually put strong downward pressure on oil prices. I have heard an argument that it could go the opposite direction though and the oil producing nations will lower production to keep the prices high. My personal thought on this strategy is that it sounds like a great way to have oil demand dry up even faster as EV's become even more economical compared to ICE (internal combustion engines).
I know you fellas over the pond think we in the states are big babies when we cry about gas prices when they are >$4.00/gal. I have done a fair amount of travel in Europe and have been stunned at the prices of fuel there! IIRC it was around double when I figured out the euro/liter to dollar per gallon calculation. In Germany today, Google says gas is ~$7.14 / gal compared to $3.52 in the US. People in the US would flat out revolt at this price!
Strange how you never see an F150 in Europe
The other factor of course is factories and the whole supply chain has been hit with COVID limitations as well. So both demand and availability have bene impacted.
That is exactly why you don't see an F150 in UK :). 50mpg is no longer seen as "good" but as a low average...