Cement, Glass, Steel and Suez Canal
If you work in the trades you will sadly be fully aware of the current situation with shortage of materials, cement, glass and steel. This is partly as result of the boat that got stuck in Suez Canal, as well as Brexit.
As if this wasn’t enough, the closing of the factory in South Ferriby by Cemex was a blow to all the construction companies and is having a knock on effect on trades.
Due to this, many trades see themselves desperately short of materials; as an interesting anecdote. We’ve received reports of bags of cement being sold on Facebook Marketplace for up to £100!
The situation really is desperate and understandably, everyone is looking for the best solution in their hands.
What does this mean for the trades?
If you work in construction or gardening, you will have provided your clients with quotes, taking into account prices prior to this crisis.
As result of the shortage and the prices of materials skyrocketing, in many cases up to 30%, any quotes you provided will valid for a period of time which will affected by this increase in prices.
Bureaucracy as result of Brexit isn’t helping either, paperwork is moving slowly through the pipelines and this is adding to the existing frustration.
How to protect your business
If you have been providing estimates to your customers, quotes may be valid for a period of time and may not take into account the sharp rises in the cost of raw materials.
This could expose your business to reduced profit and even loses. Our advice is to:
- Include a 30% increase in cost of raw materials to account for current prices
- Validate the estimates for a short period of time
- Advise your clients that the estimate is subject to price increases, i.e. Terms & Conditions
Transparency is always the best policy and keeping your customers updated with the current situation can help you manage expectations and keep the situation under control.
We look forward to hearing from you.