Further Force Majeure Price Increases

Categorised in: Company news | Posted on: 4 May 2021

Having written to you in early April regarding the significant challenges the industry was facing in relation to raw material availability and the impacts it was having on the price, I’m writing again now as unfortunately, this trend has continued throughout the whole of April and it looks likely to continue for the foreseeable future.

Whilst the cost of shipping containers has started to reduce, regrettably the price of raw materials has continued to surge with haulage rates within the United Kingdom continuing to move forward at a pace.

Since our last communication, we have received several additional increases from our manufacturing partners; which we have highlighted in yellow in the table here.

As per my comments last month, with the nature and scale of the Force Majeure increases we are receiving, we have no option but to apply the manufacturers increases in full, and whilst we fully appreciate that this will create concern, frustration and may indeed result in a loss of business, we simply cannot afford not to pass on the manufacturers increases in full.

Additionally, it’s worth noting that the manufacturers are struggling to keep up with demand and therefore many are implementing the price increases on orders placed months prior to the published increase. They are invoicing us at the rates applicable on the date of dispatch, and not at the rates applicable on the date that the goods were ordered.

Therefore, regrettably any materials delivered by C&L after the increase dates in this letter, will be charged at the rate applicable at the date of dispatch.

Unfortunately, with the raw materials supply volatility continuing, we may see more increases later in the year, so please follow our LinkedIn page for regular updates.

Once again, thank you for your ongoing support, and whilst I appreciate that my note is unlikely to be well received, I do feel that it’s important to be open about the situation.

Kind Regards,

Gareth Twohey
Commercial Director: Civils & Lintels