Global increase in raw material prices - unfortunately also in our sector
Dear customers
We thank you for the trust you have placed in us.
Our company is always committed to providing you with high quality and fulfilling orders reliably.
Unfortunately, we will also not be affected by the immense increase in the costs of raw materials and transportation (e.g. wood, fabrics, etc.).
Due to the circumstances, we now have to adjust our prices starting 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 basic information
In many areas, commodity prices are rising sharply. If this trend becomes a long-term one, consumer prices could eventually rise as well.
People have already become accustomed to the fact that the dream of owning a home is difficult to achieve for those with average incomes. At least in metropolitan areas, prices are rising year after year. Not only is affordable land, but also artisans are becoming increasingly difficult to find.
And now, building materials prices are also rising sharply. The Federal Statistical Office reported a price increase of more than a fifth for softwood lumber (slats and timber) compared to March 2020. Furthermore, plastic, copper, and insulation materials are apparently also in short supply.
Problems in all sectors
But it's not just the construction sector that's suffering from raw material shortages and rising prices. A recent survey by the Ifo Institute in Munich found that 45% of German industrial companies are short of parts or materials. Manufacturers of rubber and plastic products are particularly affected, with 71.2% reporting problems.
For 30 years, the institute has been requesting information on parts or material shortages every three months, but never before has the percentage of affected companies been so high. "This new bottleneck could jeopardize the sector's recovery," warned Ifo expert Klaus Wohlrabe.
Bank of America warns of hyperinflation
Rising commodity prices could ultimately make some products more expensive for consumers. Whether this happens depends primarily on how long the raw material shortage lasts and how quickly the global economy recovers after the crisis.
Bank of America has already been quick to warn of "temporary hyperinflation." Other experts are more relaxed and see only temporary effects for now. In any case, it's worth remaining vigilant when it comes to inflation. One thing often leads to another, and the knock-on effects could end up making life more expensive in many sectors.
Source: ZDF
