INDUSTRY
BIG ASK
How are issues in the channel affecting the OP industry? As with many sectors in the UK, the channel is under pressure from numerous external factors. What are you experiencing, what will the outcome be and what do dealers need to know?
Simon Howorth, marketing and
some things are, unfortunately, out of our control and the global
design manager, Dams
pandemic has left us in the position where we have no choice
The COVID-19 pandemic has not
but to implement price increases and share a proportion of the
only caused global health issues,
increases, which have been directly related to the significant rises
but continues to create challenges
in raw material prices and the cost of freight and containers.
throughout the world economy. We
Over the last few months we’ve continually managed an
are seeing, first-hand, the effects
unprecedented level of cost increases - and they have just
on raw material prices, which are
kept on coming. We’ve been forced to renegotiate all our
continuing to rise to unseen levels as demand outstrips capacity. From a manufacturer’s perspective, there’s been disruption to our supply chain since the start of the pandemic. We’ve seen a continuous upturn in pricing and increased
raw material costs, freight costs and fuel costs - with some materials now on their fourth and fifth increases for the year, some as high as 40% - and freight costs quadrupling. As I’m sure everybody is aware there remains continued
demand for materials such as steel, MFC, plastic and
pressure on material prices and availability across a large
foam that we use throughout our manufacturing process.
number of sectors, and office furniture is no exception. As a
Furthermore, there have been shortages in available
result there has been a general understanding among dealers
containers, and space on container ships from the Far
and end users of the continuing escalation in raw material
East, with freight costs rocketing and restrictions being
prices and external supply issues - including the driver and fuel
implemented on capacity over the coming months.
shortages that are in the news at the moment.
At Dams we use our manufacturing and purchasing strength
We appreciate that these are challenging times and
to ensure we maintain stocks of materials at appropriate levels
Dams remain fully committed to supporting our customers
to keep the prices stable for our customers throughout the
throughout - and we look forward to the return of some
year, absorbing any costs internally where possible. However,
stability in the near future.
[10] OCTOBER 2021
www.dealersupport.co.uk
