Further Price Increases IncomingCategorised in: Company news | Posted on: 28 June 2021
Having written to you in early May 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 May and June and it looks likely to continue for the foreseeable future.
Since our last communication, we have unfortunately received further additional increases from our manufacturing partners, where regrettably, the contracted notice period have been removed and therefore we are left with little option but to pass on the increase with minimal notice.
To provide some context, we are experiencing significant delays in supply on key product ranges such as Lintels and Underground drainage where we’ve been on allocation for several months and where we are still waiting for products ordered in March/April to be delivered. Therefore on some products we are seeing a significantly extended lead time of up to 16 weeks from some suppliers.
Unfortunately we have seen a further reduction in our cement allocation of close to 30%, and a price increase with only a week’s notice provided. Therefore we will be increasing our cement price by 12.5% on the 1st July 2021. All other July increases will be implemented throughout the month of July. Details of the increases can be found here.
As supply is constrained, we will be prioritising allocated product to those customers that buy a wide basket of goods from ourselves.
Unfortunately, with the raw materials volatility continuing, we are very likely to see more increases later in the year, so please follow our LinkedIn page for regular updates.
I appreciate fully the impact that limited availability and price increases has on your business (as it has a similar impact to ourselves), and we are doing all we can to work with our Supply Chain partners to minimise the impact of these global challenges.
Once again, thank you for your ongoing support and as I’ve said previously and on numerous occasions, I appreciate that my note is unlikely to be well received, however I do feel that it’s important to be open about the situation.
Commercial Director: Civils & Lintels