Effects of Pandemic on Supply Chain, Costs and Productivity
November 17, 2021
Like many industries, office furniture has been impacted by the challenges of supply chain issues resulting from the pandemic. We’re experiencing constant lead time changes and sometimes-daily cost increases from manufacturers.
While the current situation is beyond our control, Douron is here to help guide you through this constantly-changing process. We are working every day to get your furniture furnishings as quickly as possible, and at the lowest cost the market will allow.
You can rest assured that we’ll provide you with the most up-to-date information on your project’s schedule and any necessary price changes. As soon as we know, you’ll know.
Thank you for your patience and understanding as we navigate these unusual times together, and thank you for choosing Douron.
Lead Times in Current Climate
Raw Materials Cost Increasing
• Industrial metals nearing record highs, increasing 1.53% from September and ~200% from early 2020.
• Iron Ore prices are rebounding 8.02% from September.
• Since July 2020, Cold Roll Steel has increased more than +230%.
• Aluminum + 49% in the last 12 months.
Container rates and supplier delivery times need significant progress
• Container rates have declined from over $13K to $11.2K per container, an 8.21% decrease from August.
• Supplier delivery times are declining for the first time since early 2020, but still at record “slow” levels.
More logistics capacity needed.
• Global transport capacity is starting to increase (almost 10%) from early 2021, butstill 30% less from where it was in 2019.