Gartec Spare Parts News
The last few years have been turbulent for supply chains, with Covid and increased material prices. We were hoping to see the last of this, but the Russian invasion of Ukraine has created further turmoil on the freight market, energy prices and raw material prices.
Late last year, the consensus on the market was that the high costs in Q4 2021 would remain for the majority of 2022, with a possible downturn at the end of the year.
However, what we have faced is instead further increases on almost everything we source but especially on electronics, motors, steel, aluminum, and glass. Steel and aluminum are hit from two angles where the supply is lower since parts of the global supply came from Russia and Ukraine and the process is very energy intense, thus production is much more expensive due to increased energy prices.
We also face significantly higher inbound freight cost, for two reasons; One is that freight is more expensive in general, the other is that the number of shipments has increased significantly since we rarely receive full batches, due to limited supply.
Based on the above, we will unfortunately need to make a price adjustment on our spare part prices, increasing most of our prices by no more than 5%, effective 1st June.
Please contact us on 01296 397100 or [email protected] if you have any concerns or require further information.