COVID-Related Supply Chain Delays and Raw Material Shortages
Nearly 18 months after the world was first impacted by the global COVID-19 pandemic, we continue to feel the aftereffects as well as new emerging challenges affecting our industry.
Delays in production due to a shortage in raw materials and labor are a major concern and are being felt across many industries, including furniture manufacturing.
At Pine & South, we continue to stay in close contact with our manufacturer partners to stay abreast of any changes so we can maintain updated lead times on our website and keep you informed as best we can. Please check each individual product page for the most up to date lead times available.
For more detailed information on the cause of raw material shortages and delays, please see below.
We know delays in receiving your order can cause significant issues in helping us all get back to some semblance of normalcy and in addition, it can be extremely frustrating. Should you have any questions regarding an existing or upcoming order and what these industry challenges may mean for you, please reach out to us at firstname.lastname@example.org.
We wish you and your families continued health as we move forward into the year and thank you for your continued business.
What is the cause of the raw materials challenges?
A shortage of raw materials and labor are driving an increase in commodities costs as supply decreases and demand strengthens. This coupled with severe weather events such as the February Texas deep freeze and global supply chain issues such as the six-day March Suez Canal blockage, congested ports and shipping container shortages are further prompting what some are calling “a perfect storm of issues.”
As a point of reference, here’s a snapshot of how drastically worldwide commodity prices have risen as a result of these issues:
- Steel: 100%+
- Aluminum: 30%+
- Copper: 100%+
- Freight: 13%+
- Wood: 10%+
- Cardboard: 10%+
- Oil: 40%+
- Transportation: 25%+