Supply Chain Issues & The Heat Treatment Industry
I don’t believe I am overstating it when I make the unconditional statement that the global heat treatment industry is seeing unprecedented challenges and changes these days. We all know the root cause, disruptions caused by the COVID 19 pandemic and we see on a daily basis how it has effected the worldwide supply chain. There can be no better example of this than the auto industry and the “chip” shortage which has caused a dramatic slowdown in vehicle production (“The Monty Heat Treat News” has covered this topic in the past, an article entitled “Automotive Slow Down to Significantly Hurt Captive & Commercial Heat Treaters” can be found at Automotive Slow Down to Significantly Hurt Captive & Commercial Heat Treaters | The Monty).
So what are these supply chain issues and how have they challenged the industry in terms of pricing and deliveries? We have spoken with several suppliers to the industry about this topic and this includes Mr. David Howard, Sales Manager of Codere Furnaces of Switzerland.
“This extraordinary event has been having repercussions on many different levels, and while it translates into an increase in activity it also causes supply difficulties. At Codere for several months now we have been experiencing a constant increase in prices of different materials and electric components. Our focus has been on reviewing sourcing which has been excessive with past & existing suppliers for purchasing. However, this rise in costs, global shortages as well as lack of transport capacity make an adjustment inevitable in the prices of our products.
Also from September 2021 our prices have increased as a result of this domino effect from our long-term partners. Our customers have treated this news with mixed reactions however at the end of the day these issues also apply to them and generally can be understood from their side.
The entire increase in costs suffered is not fully considered here, and substantial deviations can be observed depending on the components. We nevertheless are bullish & feel these circumstances will relax in the future and we are working continuously on measures to improve our efficiency/ response. David Howard, Codere Furnaces”
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