Rising raw material prices

Rising raw material prices - Livom

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

Dear customers

We thank you for the trust you have placed in us.

Our company always strives to provide you with high quality and reliable execution of orders.

Unfortunately, however, we are now not spared from the immensely rising raw material and transport costs (eg wood, fabric, etc.).

For this reason we have to adjust our prices from September 1, 2021. This is a price increase of about 10%.

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

Rising commodity 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.

People have already become accustomed to the fact that the dream of owning their own home is almost impossible for normal earners to realize. At least in the conurbations, prices are rising from year to year. Not only affordable properties, also craftsmen are ever more difficult to find.

And now also still the prices for building materials pull clearly up. For example, the German Federal Statistical Office reported a price increase of more than a fifth for softwood lumber (roof battens and construction lumber) compared to March 2020. In addition, plastics, copper and insulation materials are apparently now also in short supply.

Problems across all industries

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

The institute has been asking about parts or materials shortages every three months for 30 years - but never before has the percentage 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 raw material prices could ultimately make some products more expensive for consumers. Whether this happens will depend primarily on how long the shortage of raw materials lasts and how strongly the global economy picks up speed after the crisis.

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

Source: ZDF