ALCAD Home: the instability of the raw materials market forces us to adapt our rates from next July 1
The raw materials market, not only in electronic components but also in metals, has been in an unstable situation in recent months, both in prices and delivery times. This irregular situation, which is expected to continue at least throughout the year 2021, has forced us to make a very complicated decision at ALCAD Home from next July 1: raise the prices of our products in order, on the one hand, to be able to face these cost overruns and, on the other, guarantee the supply of orders.
The pandemic situation caused by COVID-19 is one of the main mainsprings that is causing this mismatch in the supply of raw materials, which affects the global market in all economic sectors that depend on these materials for their production processes.
In the specific case of ALCAD Home, for some time now, suppliers have been transferring us significant increases in prices of raw materials and increased time in delivery times, which is forcing us to implement specific management in the Purchasing Area that guarantee us its supply, for which we have to assume significant price increases.
In this context, which we have been enduring for several months, we have had to make a very complicated decision: to raise the prices of our products to be able to face these cost overruns and guarantee the supply of orders. We will try to do the best management to transfer the lowest possible price increases to the market. We understand, in any case, that we do it only as a last resort and with the aim of continuing to offer our customers the best service.
From ALCAD Home we appreciate the trust of our clients and we request their understanding in such a delicate matter, which is carried out with the sole objective of maintaining the level of quality of our service and guaranteeing supplies.
El Economista: "Supply problems in industry increase raw material costs by up to 80%"
This problem is affecting very diverse industrial sectors, as stated by the Spanish Zaragoza Metal Entrepreneurs Federation (FEMZ) in a report recently published in one of the leading economic media in Spain, El Economista. The Federation warns of the serious problems they face due to the lack of supply since the beginning of the year and the economic consequences that it implies. As you can read, this situation, in addition, "is causing an increase in the prices of raw materials necessary in production processes such as steel, aluminum or copper, among others, reaching increases of up to 80%".
In another article published in the same outlet, it is stated that more than 80% of the companies surveyed by the Capgemini Research Institute stated that their supply chains had been affected by the COVID-19 crisis. 68% were forced to adapt their business model, and 62% see increasing the resilience of the supply chain as a priority after the pandemic. This report shows how companies have had to face a drastic change in terms of stock management.
In this regard, as the document points out, 55% of organizations have taken between three and six months to recover from the disruptions suffered in the supply chain since the outbreak of the health crisis, while 13% anticipate that it will take between six months and a year to do the same. Inevitably, this implies that few companies were there and are ready for any possible disruption.
Among the main problems detected by the surveyed firms are the shortage of key materials or components (74%); delays in shipments and longer delivery times (74%); difficulties in adjusting production capacity in response to fluctuating demand (69%); and planning problems in a context of volatility in consumer demand (68%).
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