The shortage of components and raw materials globally, coupled with the huge increase in demand for finished product, is having exceptional consequences on all of our lives. Sadly the factory automation business is not immune to these pressures and is suffering as much as any other.
The good news is that all of our international manufacturers and suppliers are experiencing a huge increase in demand for their finished product.
The downside is that factories cannot meet demand, and face massive shortages of components and staff whilst being hit with escalating energy and raw material costs – resulting in extremely long lead times and increased prices.
Over the last 18 months, Parmley Graham has reviewed and modified its ordering systems to improve the flow of goods and shorten delivery times. Currently, we have over £35million on forward order, but the situation has not yet stabilised and is actually continuing to deteriorate.
All manufacturers have been forced to review their costs, resulting in increased list prices. Some suppliers have implemented the increase immediately, others have given 30, 60, or 90 days’ notice. However, all are now stating that their terms are “prices ruling at date of despatch”. In normal circumstances, this would not be a problem but the extended lead times have made this a major issue.
Parmley Graham is doing its utmost to minimise the impact these price changes are having on our customers. Unfortunately, we do not know or have control over what price we will be charged for goods when they finally arrive, and we cannot absorb the increases. Therefore we must invoke Clause 3 of our T’s & C’s of sale, which states, “All goods are sold subject to the prices ruling at the date of despatch.”
Every order is important to us, and every customer is unique. If product lead times or price changes cause particular concern, please contact us to discuss the matter. I cannot guarantee we will be able to satisfy your request, but we will certainly try.
As of 1st July 2022, Siemens will be having a Simatic price increase. Please note that the exact details have not been finalised, but basically, it will be +9% on hardware and +6% on Software.
May I take this opportunity to thank you for your business and continued patience during these unprecedented times.
Nick Wilson, MD, Parmley Graham Ltd.