Industry Update – January 2022
To our friends and loyal customers,
2022 is beginning to unfold in front of us, and it has a very similar look and feel to last year.
Covid-19 continues to be part of our daily lives and the effect of the variants is being felt across all facets of our industry from our supplier partners to our customers and beyond. Inflation is prevalent as material costs continue to rise.
Port congestion and freight costs continue to challenge our suppliers both domestically and offshore. There aren’t enough trucks, drivers, containers, and ships to satisfy global demand. Offshore manufacturers and domestic importers continue to pay well above contracted rates to ensure premium vessel space is secured. All these input cost increases contribute to an anticipated paradigm shift. Imported goods may now cost more than domestic products, and availability is expected to continue to drive demand for these products.
The outlook, for 2022, looks to have more of the same conditions. Ocean freight is not expected to recover this year, with no new shipping capacity scheduled to be added. This is expected to continue for the foreseeable future.
Like your business, WCP is experiencing dramatic inflation in all areas. There will be more price increases in 2022 and it will be difficult to predict how frequent and how much. We are working diligently to source competitive products and further align with key suppliers to minimize the impact of these increases to you and your business.
We understand the importance of our role as a supplier and are committed to keeping you informed with current, accurate information so that you can effectively manage your business in a healthy, profitable way.