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Pent Up Demand Will Help Spark Recovery, Says SteelHouse’s Mark Douglas

Written by Tim Edmundson

Ecommerce Backlogs Could Spark Economy

Ecommerce is humming right now, and many retailers have backlogs of orders developing as their supply chains work hard to catch up with demand. SteelHouse CEO Mark Douglas has seen evidence of that in SteelHouse’s data, and videoed into Fox Business today to share those insights. Sales on clothing have jumped 68% over the last two weeks—and many other verticals are seeing similar growth—meaning that many retailers will be busy (and prosperous) fulfilling orders when the time comes.

“The products aren’t shipping,” said Douglas. “I think that backlog can be the jumper cables that the U.S. economy needs, as companies rehire factory workers to fill that backlog.” That’s good news, and could very well be a catalyst for more people to get back to work.

With stay-at-home orders still mostly in effect, the online orders still flowing in could be a good indicator that once normalcy returns—demand will come with it. In fact, says Douglas, it would seem that people are already looking to recapture that feeling. “I actually saw a traffic jam in Los Angeles for the first time in six weeks,” he said. If traffic in LA isn’t a sign of things getting back to normal, we don’t know what is. 

So when will things get back to normal? It could be too early to tell. But one thing is for certain—consumers are still spending, and we can expect that spending to surge even more once things start to get back to normal.