It is no surprise that with current market conditions and supply chain back-ups, we are seeing increased stress on supply and demand in all areas of electrical equipment manufacturing, supply, and delivery.
In an article written by Max Garland at Supply Chain Dive, there is mention of even Amazon being affected by fuel surcharges, labor shortages, and inefficiencies in logistics and warehousing.
Many manufacturers in the electrical equipment space are now enacting “PIP” or price-in-place when it comes to commodities and other materials. Although our manufacturers are working to secure raw goods, logistics, and manpower to produce the goods we order - it has become increasingly evident that these longer lead times are going to affect the ability to hold pricing.
Unfortunately, High to Low Voltage is not immune to these supply chain and manufacturing challenges, and therefore neither are our customers. Just recently we saw a price increase on an order placed with a major manufacturer in the middle of the ordering process. In order to receive the goods in a timely manner, we were forced to change our price, as the cost to the manufacturer had increased by 20%.
We recognize that this has far-reaching implications for our valued customers. We want you to know that we understand how difficult this situation is. These price-in-place increases are forcing our customers and partners to make a decision - do they want the goods enough to be able to pay the price increase? Does the customer absorb the loss by passing it along to their customer? Will the customer cancel the order, but now with an even larger cancellation fee?
The goal of our team at High to Low Voltage is to communicate the current economic conditions and work together to find suitable answers to these questions for all parties involved in the transaction. We understand that these are difficult times. We believe that through effective communication, we can make these tough circumstances just a little easier for all. If you have questions or would like to discuss this further, feel free to give us a call. Together, we will navigate the choppy waters of the current market challenges for future smoother waters.