RAW MATERIAL SHORTAGE
Why is the shortage is still a problem today
The problems mostly started at the beginning of the COVID pandemic. Even though that’s almost 2,5 years ago, the shortage is still a problem today. How could this be?
When COVID-19 hit, the world went into lockdown. Production of many products and components was stopped. But while factories all over the world closed, the demand grew. We started to do more online shopping, spent most of our time indoors, working from home and started renovating our homes all of which expanded the need for RAW MATERIALS. Supply and demand got out of balance.
On top of that, transportation was limited, harbors locked down, less containers shipped. Through air, COVID related products were prioritized.
You would think that all of this would bounce back now that COVID is on its way out of this world, that producers would have upgraded their facilities to answer to the high demand. Unfortunately, the demand for RAW materials continues to rise, due to growing economies worldwide. Especially Asia that used to export most of its materials is now more and more using it to supply their own need. While producers are still catching up after the COVID disruption, their backlog keeps growing.
How does this affect IPP and our customers:
In some cases increasing prices, increasing lead-times and some delays. However frustrating, we as IPP do everything possible to minimize the impact. From buying key components at our own cost to keeping stock of high-risk products. Proactive status updates is what we strive to.
Need help or advice? Do not hesitate to contact us.
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