By Timothy Aeppel

(Reuters] – Stephen Bullock gave up the idea of buying parts and raw materials eight months prior to his production line.

Bullock instead told his purchasing supervisor to buy “all you can” and that they would store any excess. Bullock is the chief executive officer of Power Curbers Companies which makes heavy equipment for concrete sidewalks and other infrastructure projects.

The United States is now two years into the pandemic which has crippled supply chains around the world. Companies are trying to make enough of their current production to meet demand and replenish inventory. That buildup was key to the fourth quarter’s hefty 6.9% annualized growth in gross domestic product, with inventory investment contributing 4.9 percentage points, according to the U.S. Commerce Department.

In the wake of the pandemic, spending shifted from services to goods. This boom has stretched supply chains and filled warehouses. The GDP increased at an even lower 1.9% in the most recent period, excluding inventories.

The combination of a boom in demand and shortages has led to an inflation wave that grew at a rate not seen since nearly 40 years ago. The Federal Reserve is now looking to raise interest rates in March because of this.

Bullock, who owns a company in Salisbury (North Carolina), said that supply chain issues have not improved but continued to get worse.

The decision to ditch the “just-in time” inventory model for building up supply to buffer stock made perfect sense. He was referring to a system where parts and material are bought as quickly as possible to lower the cost of maintaining supplies. In the age of globalized trade and corporate America, just-in-time became a common standard. Businesses were often left in the dark when they received orders which normally take several weeks, but that took several months.

Bullock is now aiming to purchase steel and other materials whenever possible. Bullock said that they had to think creatively about how to place all the material. We’re making use of every nook and crevice to store these incoming goods.”

Some companies are seeing supply chain issues impact their results. Tesla Inc. shares dropped on Thursday following the announcement by Tesla that they would hold off releasing any new cars until next year, citing supply chain issues it stated could be sustained through 2014. The news broke earlier in the week. General Electric Co. (NYSE:) reported a drop in quarterly revenues due to supply chain problems.

To address the shortages of supplies, companies have become more creative.

Rockwell Automation Inc. Blake Moret, chief executive of Rockwell Automation Inc (NYSE:), stated that his company now has more “work in progress” to ensure workers are able to continue assembling products while they await shipments of rare computer chips. These chips are applied just before shipping the product.

Rockwell, which was able to benefit from automation in factories and warehouses, during the pandemic has had “a slightly” higher inventory level, according to Moret. But not enough to make a substantial impact on overall inventories.

On Thursday, the Milwaukee-based company raised its forecast earnings for fiscal year after it announced a 40% increase in orders during its first quarter. This is compared to last year. Moret stated that “we’re still in the initial phase of multiyear economic growth.”