High energy prices and supply chain disruption are affecting most industries. The three major causes are:
The invasion of Ukraine sent shockwaves around the globe. Overall, it was a brutal blow to Ukraine and the world markets.
All of these factors have significant implications for electrical contractors. In this article, electrical contractors will get an update on what these factors mean for them in Q2 2022 and will see projections for Q3 2022.
Ukraine and Russia are major steel exporters. In 2021, Ukraine ranked as the world’s eighth-largest exporter. At the same time, Russia was the fifth largest.
Since the invasion, the Russian destruction of plants damaged Ukrainian output, and the European Union trade embargos stopped Russian exports. As a result, global supply is down, and price pressure is up. For electrical contractors, this has meant high prices for conduits, panels, boxes and fittings.
Russia and Ukraine are significant copper producers, and sanctions against Russian exports may exert upward pressure on prices. At the same time, new economic slowdowns in China from resurgent COVID-19 have introduced more price volatility.
Wire and cable are the main copper products of interest to electrical contractors.
The war in Ukraine has thrown energy markets into disarray. Here are some examples:
All these factors have meant immense price pressure for manufactured goods.
In addition to surging fuel prices, the war has disrupted trade routes such as the Euro-Asian railway through Russia. These disruptions are causing grave dangers to shipping to and from Ukraine.
Manufacturers are still working through backlogs and struggling to find alternative raw materials. As a result, lead times for complex equipment like switchgear are longer.
Get on top of market trends. Read this report from Raiven which includes recommendations about overcoming electrical supply market challenges.
And be sure to contact us for more information about growing your business with our Certified Service Partner (CSP) program.