The global supply chain has been experiencing significant disruptions and challenges, and the hot tub and spa industry is no exception. Companies like Bullfrog Spas, which have seen a surge in demand as more consumers invest in upgrading their backyard spaces, are grappling with complex and extensive supply chains that stretch across continents and oceans. The COVID-19 pandemic has only exacerbated the existing issues within the supply chain, making it increasingly difficult for customers to purchase the products they desire.

Bullfrog’s CEO, Jerry Pasley, recently described the company’s predicament to the Wall Street Journal as a combination of favorable demand and unfavorable supply chain conditions. On a typical day, the company’s factory in Herriman, Utah, receives deliveries of 40,000 gallons of chemicals, 400 sheets of plastic, and up to 60,000 additional components. However, various factors have contributed to delays and bottlenecks within the supply chain, particularly at ports, resulting in the extended wait times for customers.

The production of Bullfrog’s M9 spa, one of their most intricate models, exemplifies the challenges faced throughout the supply chain. The assembly process in Utah involves approximately 1,850 parts sourced from seven countries and 14 states. These parts travel a cumulative distance of 887,776 miles to create a single hot tub, highlighting the extensive reach of the supply chain.

A Perfect Storm of Delays

One of the major obstacles Bullfrog encountered was the winter storm in Texas earlier this year, which led to the shutdown of the country’s chemical industry. This disruption severely impacted the supply of raw materials needed for the production of urethane, a crucial component. Bullfrog’s employees tirelessly worked to find alternative solutions, contacting suppliers and searching for available tanker-trucks or excess inventory of the necessary chemicals. Despite their efforts, Bullfrog had to reduce production by 75% in March and only resumed full capacity two months later.

Trucking capacity has also been a challenge during the pandemic. Many trucking companies shut down permanently in the early stages, resulting in a capacity crunch when shipping volumes rebounded. Bullfrog’s frame system, comprised of individual beams made from shaped plastic, is transported from Nampa, Idaho, to their Utah facility. The limited trucking capacity has further contributed to delays in the supply chain.

Difficulties Sourcing Materials

The sourcing of electric motors is another aspect affected by the pandemic. While Bullfrog previously relied on suppliers from Italy, long-term outsourcing trends have shifted the sourcing to China. The motors are then assembled into water pumps in Tijuana, Mexico, and transported to Utah. Container shipping and trucking challenges have disrupted this process, leading to more frequent meetings between Bullfrog and its suppliers to strategize ways to overcome the obstacles.

The exterior cabinets of the hot tub, manufactured near Shanghai, China, face delays due to port slowdowns and staff shortages in California. The cabinet pieces are transported across the Pacific on container ships to ports in Long Beach or Oakland before being trucked to Utah. The high demand, combined with shipping and warehouse challenges, has resulted in considerable logistical complications. Bullfrog even resorted to airlifting cabinet materials from China to Salt Lake City to prevent a plant shutdown.

The global semiconductor shortage has also affected Bullfrog’s production. Touch screens imported from China and Taiwan, which are crucial for temperature control, have limited inventory due to the shortage caused by canceled orders and unforeseen surges in demand. Bullfrog relies on timely deliveries to avoid disruptions in their manufacturing process.

Despite facing numerous obstacles, Bullfrog has managed to maintain a steady supply of seat backs from a supplier located 90 minutes away in Logan, Utah. The supplier has strategically increased raw material inventories to ensure uninterrupted production in case of chemical shortages.

Water-spraying jets, another essential component, are manufactured in Guangzhou, China, and then transported to a warehouse in Cleveland, Tennessee, via the Panama Canal and Eastern ports. Unlike the Suez Canal incident earlier this year, which caused significant disruptions, the operations at the Panama Canal have been relatively smoother. Similarly, the Eastern ports, which handle less trade from Asia compared to their West Coast counterparts, have experienced fewer congestion issues.

Once the hot tubs are fully assembled, they are loaded onto trucks or trains for delivery to retailer warehouses and ultimately to customers’ homes. However, even the transportation stage faces challenges. Train lines, intricately connected to port complexes, have struggled to cope with the influx of imports, resulting in overwhelmed terminals and distribution bottlenecks. This space crunch and the subsequent delays have further added to the overall delivery timeline for customers.

Living in a New Reality

Jerry Pasley, the CEO of Bullfrog Spas, acknowledges that this new reality in manufacturing has shifted consumer expectations. Customers now understand that if they want a specific product, they may have to place an order and be patient due to the complexities and uncertainties within the global supply chain.

The COVID-19 pandemic has undoubtedly disrupted the hot tub and spa supply chain, causing delays and challenges at various stages, from sourcing raw materials to transportation logistics. Companies like Bullfrog Spas have had to navigate through a complex network of suppliers across different countries, managing issues such as chemical shortages, trucking capacity constraints, port slowdowns, semiconductor shortages, and congested train terminals.

As the world continues to grapple with the effects of the pandemic, businesses throughout the supply chain are working diligently to adapt and find innovative solutions. Despite the difficulties, Bullfrog Spas remains committed to meeting customer demand and providing exceptional products. However, the current state of the supply chain serves as a reminder of the intricate ballet required to bring goods to consumers and the challenges that can arise, even in the most unforeseen circumstances.