Electrical contractors must prepare for supply shortages and price spikes

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Electrical Supply Chain Disruptions

Electrical Supply Chain Disruptions

Solutions for electrical contractors to prepare for and deal with impending supply shortages and price spikes.

IRVINE, California, USA, Oct. 20, 2021 /EINPresswire.com/ — Electrical contractors must prepare for continued price increases, spikes in demand and longer delivery times amid supply shortages. supplies related to the pandemic. Raiven, a leading buying and sourcing platform for contractors and property managers, presents data and offers solutions.

DISRUPTIONS IN THE ELECTRICITY SUPPLY CHAIN

According to an electrical supply chain study published by Raiven, the prices of various raw materials such as copper and steel have doubled between 2020 and 2021. This echoes downstream price increases seen in finished electrical supplies. . The trend is also true for specialty materials – polyvinyl chloride used in the production of PVC conduit fell from $5,480/tonne in April 2020 to $9,570/tonne in August 2021. At the same time, its production fell more than 50%, leading to further price increases.

Similar situations can be seen in all manufacturing sectors leading to supply chain disruptions. Electrical contractors are already facing challenges in sourcing certain items at an acceptable price – from basic wiring and lighting products to generators, electric vehicle charging stations, and more.

SUPPLY SHORTAGES ARE EXPECTED TO CONTINUE

Raiven’s shortage data shows a variety of factors impacting the electrical supply chain, including:

• Labor Shortages – The COVID-19 pandemic wiped out 8.8% of all working hours globally. This has significantly affected the manufacturing sector and led to a decline in production. In addition, the market was already short of qualified electricians, so the demand continues to outstrip the supply of labor and materials.
• Economic challenges – There is an increase in demand for supplies, but the industry cannot keep up due to labor issues and raw material prices. As a result, lead times from suppliers are at their highest since 1987, often taking months to fulfill orders.
• Logistics Bottlenecks – All major transportation methods have experienced inbound delays – ocean shipping, trucking and air freight have suffered greatly during the pandemic. Most notably, international shipping saw a 20.8% drop in port calls in 2020, from which the economy has yet to recover.

As these factors began to subside in mid-2021, new challenges were posed by the COVID-19 Delta variant and natural disasters. Prices for electrical supplies are likely to continue to rise in the short to medium term.

WHAT ELECTRICAL CONTRACTORS CAN DO TO SECURE SUPPLY

When Raiven began researching electrical supply chain disruptions, company CEO Brett Knox pointed out that distributors had varying levels of pricing sophistication. Some of them are proactive and raise prices ahead of the curve, while others may be months behind the market. How do you manage these difficult times?

Brett Knox, CEO of Raiven, describes how group buying and technological advancements can help contractors save time and money in these situations: “First, contractors and property managers need to join a buying program in order to to take advantage of the combined purchasing power of their colleagues. This ensures lower prices and higher priority on hard-to-find products. Brett continues, “Second, there is now technology that searches distributors in real time to find product availability and current pricing. This can save you a ton of time and money because you let the technology do all the work. Nobody wants their employees to waste hours calling distributors or searching the Internet for product availability. »

As supply shortages persist, electrical contractors who leverage strategic distributor relationships and technology will not only be more profitable, but will have happier customers.

ABOUT RAVEN

Raiven is a leading shopping platform, enabling contractors and property managers to save 7-25% on their daily purchases. Raiven’s cloud-based sourcing platform helps companies source and buy smarter and more efficiently with patent-pending AI algorithms and a buying program that offers deep discounts from from industry-leading suppliers. Learn more at Raiven.com.

jeff gold
Raiven
+1 503-709-0286
[email protected]

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