Posted on 21st February 2022 at 10:10
As an industry we are experiencing increasing issues with supply and demand, although we are able to see some form of light at the end of the tunnel on supplies. Price increases are extremely prominent.
Firstly, it’s important to note there is no single reason for the current or previous supply chain issues.
Demand for construction materials increased during the pandemic at a rate far greater than could have been planned or predicted. The normal 5% increase excelled to 50% during the pandemic.
Alongside the increase in demand, factors such as workforce illness including close contact isolation, container shortage and absence of delivery drivers resulted in fewer products for customers and significant price increases.
November 2022, Year to Date, Year on Year inflation.
Figures produced by BMF (Builders Merchants Federation)
Timber & Joinery 47.2%
Tool Hire & Power Tools 2.1%
Civils & Drainage 12.9%
In 2019 carrier reliability was up on 75%, however, April 2021 we saw this dip to under 40%. Much of this was due to port delays, compounded by suspension of traffic at the Suez Canal. In many areas these delays are only just starting to reduce.
What Innovision have been doing to help our customers;
- Ordering materials as soon as booking deposits have been received – this can sometimes allow us to keep the current pricing at point of order
- Communicating with suppliers & customers at every update
- Created a new job role to ensure communications are dealt with first-hand and from our office
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