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Over the last two weeks the effect of lockdowns over the last year are starting to hit home in our industry. Up until now we have never had supply issues as the majority of businesses have not been up to full capacity and more like survival mode.
Today things are slowly gearing back up even though there is no normality as that is never coming back. Businesses have changed so much and in the last year their business models have changed. Shopping is being done differently for one so warehouses are the new shopping centers as online has taken over.
Our biggest change as a company is being able to get hold of raw materials. The last batch of 5 tons lasted 24 hours and has us scrambling to find more. The problem is not just for us as there is no raw material anywhere.
There is a massive price increase at the end of this month and the following month. I believe it is a combination of lack of raw material due to lock downs and closed plants and also making the extra back. The imported materials from Excon in Dallas is also non existent as there is none.
Trying to get new clients will be a hell of a lot easier if you can supply them as they will be on the hunt for supply themselves. The reality is this is going to cause mayhem over the next 3 months as that is how long we predict this mess to last. My business partner is in charge of the factory and believe in his abilities to turn up miracles so we shall see how good he is at delivering.
Over the last week I have been quoting on the new prices and been open and honest with everyone saying if they can get stock elsewhere they must take it for now as there is none to be had. This way no one can point fingers saying we were only thinking of ourselves. I think somehow this coming week we will find some raw material from somewhere as my partner is confident he has found a source. Maybe it will cost us extra for now but who cares as this is what you have to do to gain confidence with new customers.
It is at times like this you wish you could just stock pile and be the only one around but hindsight is always after the fact. If we are struggling then there has to be shortages of many other things which will only inflate prices even more. I face challenges head on every day and this is just another one of those that make you think differently and hopefully find a way through it.