Electronic component manufacturers have been hiking their prices up.
In the last quarter alone, some manufacturers have been increasing their prices by as much as 40%.
This means that electrical contractors and construction companies are having to pay more for electrical parts. Consequently, customers are being charged higher prices for electrical repairs and installations.
Just why is the cost going up so much? A big problem is the shortage of parts. Not only is it becoming harder to manufacture enough parts to meet the demand, but it’s also becoming harder to ship these parts.
There is a labor shortage in both the manufacturing and shipping industry. Along with logistics issues, it’s causing the manufacture and delivery of parts to slow down, making it harder to get hold of parts and driving up prices.
The cost of manufacture is also increasing because materials are becoming more expensive to obtain. These materials include metals and insulating resin.
Events such as the Ukrainian conflict have contributed to this. Because the components cost so much more to make, manufacturers are putting their prices up to cover their overheads.
Are electrical component prices going to keep rising? Most likely. Manufacturers are still struggling to keep up with the demand and the demand is only growing.
If you’re an electrical contractor or a property owner/manager looking to buy supplies, you may want to factor the increasing prices of electrical parts into your budget. Make sure to also factor in lead times when ordering parts from abroad.