Market conditions are driving up the cost of many raw materials, currently, buyers are bombarded with price increases across multiple products.
The price of raw materials is increasing and manufacturers face cascading challenges through the supply chains. As prices continue their upward climb, manufacturers are still dealing with the two supply chain headwinds, plaguing the industry throughout the pandemic: slowing supplier deliveries and labour availability.
There are four significant trends affecting raw material prices:
- Strong global market demand, significantly China’s V shape economic recovery, has led to shortages on many raw materials
- The oil price has risen by 58% since November 2020
- The global shortage of shipping containers has led to a sharp rise in transport costs from Asia to Europe thus further restricting supplies to Europe.
- Additional non-tariff costs related to the new UK customs arrangements with the EU are adding to the cost of imported raw materials into the UK from Europe.