Rising commodity prices

Steigende Rohstoffpreise - Livom

Global rise in commodity prices - unfortunately also in our industry

Dear customers

Thank you for the trust you have placed in us.

Our company always endeavors to provide you with high quality and to carry out your orders reliably.

Unfortunately, we are not spared the immense increase in raw material and transportation costs (e.g. wood, fabric, etc.).

For this reason, 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

Commodity prices are rising dramatically in many areas. If this becomes a longer-term trend, consumer prices could also rise in the end.

We have already become accustomed to the fact that the dream of owning a home is almost impossible to realize for the average earner. Prices are rising from year to year, at least in urban areas. Not only affordable properties, but also tradesmen are becoming increasingly difficult to find.

And now the prices of building materials are also rising significantly. The Federal Statistical Office reported a price increase of more than a fifth for softwood lumber (roof battens and construction timber) compared to March 2020. In addition, plastics, copper and insulating materials are apparently now also in short supply.

Problems across all sectors

However, it is not just the construction industry that is suffering from a shortage of raw materials and rising prices. According to a recent survey by the Munich-based Ifo Institute, 45% of German industrial companies are lacking parts or materials. Manufacturers of rubber and plastic goods are suffering particularly badly, with 71.2 percent reporting problems.

The institute has been asking about shortages of parts or materials every three months for 30 years - but never before has the proportion of affected companies been anywhere near as high. "This new bottleneck could jeopardize the industry's recovery," warned Ifo expert Klaus Wohlrabe.

Bank of America warns of hyperinflation

Rising commodity prices could ultimately make some products more expensive for consumers. Whether this happens will depend above all on how long the shortage of raw materials lasts and how strongly the global economy picks up speed after the crisis.

Bank of America has already jumped the gun and is warning of "temporary hyperinflation". Other experts are more relaxed and currently see only temporary effects. In any case, it is worth remaining vigilant when it comes to inflation. After all, one often causes the other, and chain effects could ultimately make life more expensive in many areas.

Source: ZDF