Supply Chain issues

[dan_s]

SUPPLY CHAIN (Jefferies Equity Research) We’re out with a piece examining the current supply chain disruption and the
potential impacts. Quantifying the specific impacts for individual companies is necessarily complex, but there are signs that we are
past the peak pinch and Jefferies' analysts expect to see significant improvement by the second half of '22. In addition, whi le 4Q may
mark peak disruptio n, demand destruction appears to be relegated to specific subsectors. Once the shipping window ahead of the
holidays closes by mid -Oct, availability should improve for "baseline" shipping. This should have positive implications for goods with
more agnostic delivery timelines. Jefferies analysts offer commentary across several sectors, highlighting what they have been
hearing and potential impacts. We note that consumer sectors appear the most at risk, with broadlines, footwear, apparel and toys
notable call outs. Machinery, autos, home furnishings and semis appear to be poised for push-outs, and not cancellations, especially
as restocking rebounds.