It's no longer an open secret that prices are rising in all sectors. We've all heard that the price of raw materials like wood or steel are skyrocketing and the price increases are starting to make their way into the consumer sector. So no business player can be surprised.
Cars, car parts, accessories, electronics, consumer products, price increases are imminent. The shortage of electronic chips has slowed down the pace of the automotive industry and has a direct impact on all related parts without exception. More than 30% of automotive production cannot be delivered at this time.
The problems in the supply chains will last for some time, since everyone wants the same products at the same time, bottlenecks have been created on the production lines and they will take time to resolve.
The consumer will end up paying the price with all this upheaval in world trade.
Like this pandemic
I take the example of our industry, the automotive wheel. Stocks were already low when COVID hit Asia, where the vast majority of global production is located. They have since melted like snow in the sun. Remember, when production started up again, the country tightened domestic production before orders even began. Our purchasing power had just fallen.
To add some facts:
The world shortage of containers mentioned in La Presse's June 15 article quotes Mr. Pierre Dolbec: ''In addition to seeing prices reach up to $15,000 US for a container in China, some are willing to raise the stakes in order to have access to an empty metal box.''
Since March, the average price of a container has increased by more than 50% to 75% and very few companies have made their financial forecast with this unpredictable increase.
With the Suez Canal paralysis, the Port of Montreal walkout and the Covid 19 infection at the Port of Yantian, there is no sign of a lull.
With supply chain delays, rising raw material prices, the container challenge and disasters of all kinds, how will the Quebec company be able to meet customer demands?
It is obvious that the first to review their strategic planning will have an undeniable competitive advantage.
