Global rise in raw material prices - unfortunately also in our industry
dear customer
We thank you for the trust you have placed in us.
Our company always strives to deliver high quality and fulfill orders reliably.
Unfortunately, however, we have not been spared the enormous increasing costs of raw materials and transportation (e.g. wood, fabric, etc.).
We now have to adjust our prices as of September 1, 2021. This is a price increase of approximately 10%.
Wood has become increasingly expensive in recent months. Source: DPA
Rising commodity prices – some background information
Commodity prices are rising dramatically in many areas. If a longer-term trend develops, consumer prices could also rise.
The fact that the dream of owning a home is barely achievable for average earners is already commonplace. At least in metropolitan areas, prices are rising year after year. Not only are affordable properties becoming increasingly difficult to find, but skilled craftsmen are also becoming increasingly hard to find.
And now, building material prices are also rising significantly. The Federal Statistical Office for Nadel Cut Wood (roofing membranes and lumber) reported a price increase of more than a fifth compared to March 2020. Moreover, plastic, copper, and insulation materials are now in short supply.
Problems in all industries
But the construction sector isn't the only one suffering from raw material shortages and rising prices. 45 percent of German industrial companies are experiencing shortages of components or materials, as a recent study by the Munich IFO Institute revealed. Manufacturers of rubber and plastic goods are suffering particularly badly, with 71.2 percent reporting problems.
For 30 years, the institute has been inquiring about component or material shortages every three months – but the proportion of affected companies has never been higher. "This new bottleneck could jeopardize the industry's recovery," warned IFO expert Klaus Wohlrabe.
Bank of America warns of hyperinflation
Ultimately, rising commodity prices could make many products more expensive for consumers. Whether this happens depends largely on how long the shortage lasts and how quickly the global economy absorbs the crisis.
Bank of America is already anticipating the possibility of "temporary hyperinflation." Other experts are more relaxed and currently see only temporary effects. In any case, it's worth remaining vigilant when it comes to inflation. One often necessitates the other, and cascading effects can end up being more expensive in many areas.
Source: ZDF
