US Companies Load Up on Costly Inventories as New Supply Snarls Loom in China

US Companies Load Up on Costly Inventories as New Supply Snarls Loom in China
An employee works on the production line of Kent bicycles at Shanghai General Sports Co., Ltd., in Kunshan, Jiangsu Province, China, on Feb. 22, 2019. Aly Song/Reuters
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Through most of the pandemic, Kent International Inc. couldn’t import enough Chinese-made bicycles to supply Walmart Inc. and its other big U.S. retail customers.

But in recent months, the New Jersey-based wholesaler and manufacturer built a nice buffer—about a 10-week supply at its three warehouses in California, South Carolina, and New Jersey, compared to the pre-COVID normal of four to six weeks of stock. And the company is glad to have it, now that a new wave of shutdowns in China amid rising COVID-19 cases is roiling global supply chains.