Spoiler alert: Our prices are NOT rising by 40% – read on for some context…
Morning, as you may have heard, there is something of a global demand for raw construction materials right now.
This is down to three factors:
- A huge rise in shipping costs due to a shortage of empty containers (covid related issues) and a sharp uptake in global demand following lockdowns easing across the world.
- Unprecedented construction sector projects including housebuilding & people starting DIY projects
- And finally, climate related problems. Timber production in Scandinavia has slowed due to warm weather whilst cold weather in Texas (yes, Texas) has affected plastics, chemicals and polymer production.
As I said, this problem is global so obviously that includes the UK.
Here’s an article published on Friday on the BBC website…
And here’s the article in the Daily Mail
The shipping crisis may abate in 6-9 months, perhaps less but there is HUGE ongoing demand for raw materials
And the first law of economics states that where demand is high and supply is low, prices rise.
We have the same problem here at KSB – everyday we speak to suppliers and either a) can’t get the materials we need and/or b) we have to pay even more than we did the week before.
We have to be fair to our clients and potential clients and try to prepare accurate and competitive quotes but we’re a small business, we can’t afford to absorb large price increases either.
So the fairest way to proceed, we think, is to provide quotes valid for 21 days. If you wish to proceed on those terms, you pay a deposit within those 21 days to secure your order.
Any quote not secured with a deposit will cease to be valid after 21 days and a new one will be issued based on the prevailing prices we are being quoted ourselves.
We will of course continue to monitor the situation, hopefully things will calm down a bit over the next 6 weeks to 2 months or so.
Any questions please call us on 01227 738 374 or email firstname.lastname@example.org