Increasing raw material prices

Steigende Rohstoffpreise - Livom

Worldwide increase in raw material prices - unfortunately also in our industry

Dear customers

We thank you for your trust you have placed in them.

Our company always strives to deliver high quality and reliably carry out the orders.

Unfortunately, however, we are not spared the immensely increasing raw material and transport costs (e.g. wood, fabric, etc.).

On the occasion, we now have to adjust our prices from September 1, 2021. This is a price increase of approx. 10%.

Wood has become increasingly expensive in recent months. Source: dpa

Rising raw material prices - some background information

Raw material prices are drastically attracted in many areas. If a longer -term trend is growing out of it, consumer prices could also attract.

The fact that the dream of your own house for normal earners can hardly be realized is already getting used to this. At least in the metropolitan areas, prices rise from year to year. Not only affordable properties, also craftsmen are becoming increasingly difficult to find.

And now the prices for building materials are also increasing significantly. The Federal Statistical Office for Nadel Cut Wood (roof battens and timber) reported a price increase of more than a fifth compared to March 2020. In addition, plastics, copper and insulation materials are now now scarce.

Problems across all industries

But not only the construction industry suffers from lack of raw materials and rising prices. In 45 percent of German industrial companies there is a lack of parts or materials, as a survey by the Munich IFO Institute recently showed. The manufacturers of rubber and plastic goods suffer particularly strongly, where 71.2 percent report problems.

For 30 years, the institute has been asking every three months about the lack of parts or materials - but the proportion of affected companies has never been almost as high. "This new bottle neck could endanger the recovery of industry," warned IFO expert Klaus Wohlrabe.

Bank of America warns of hyperinflation

In the end, increasing raw material prices could make many products more expensive for consumers. Whether this will happen depends primarily on how long the lack of raw materials last and how strongly the global economy will absorb on speed after the crisis.

The Bank of America is already ahead and warns of a "temporary hyperinflation". Other experts are more relaxed and currently only see temporary effects. In any case, it is worth staying vigilant when it comes to inflation. Because one often requires the other, and chain effects could end up in many areas more expensive.

Source: ZDF