Inflation and supply chain delays continue to cause headaches for businesses around the world.
Dock workers in two British cities just announced new strikes, which will further snarl supply chain routes. Ford Motor Co. announced that it expects to pay $1 billion more for car parts in Q3, due to shortages and inflation. And closer to home, Hartford sports fans won’t be able to place bets at the 4,000 square foot XL Center until March, because supply issues are delaying important construction materials, according to the Hartford Courant.
AffinEco, however, has able to keep costs down. How? Partly because its buying group, National Service Alliance (NSA), is getting better deals for AffinEco clients.
“AffinEco customers are really benefiting from these prices, which we are able to obtain at costs lower than the national average because of NSA’s market leverage” said AffinEco President Michael Diamond.
We compared costs from three major suppliers of towels, tissues, wipes, soaps and air products, with what NSA is charging.
- Kimberly-Clark boosted its prices by 25% and more. The NSA increase is averaging approximately 20%.
- Georgia-Pacific increased prices up to 18%. The impact to the NSA is approximately a 10% weighted average.
- Essity raised prices up to 18%. NSA pricing will remain unchanged until Sept. 31, with an unknown increase effective Oct. 1.
“NSA’s ability to hold the line on manufacturers’ price increases represents a real benefit for our customers and validates our membership in the organization,” Diamond said.
Looking Ahead
There seems no end in sight to supply chain delays, triggered by COVID and then worsened by strikes and labor shortages.
According to NSA, “The current economic picture has continued to be plagued with high inflation, the war in Ukraine, and overall sense of business uncertainty. Many business are preparing for an economic slowdown over the next 12 months. Unemployment remains low and many companies are still navigating the labor shortage. Transportation costs remain elevated, and manufactures continue to raise prices.
“Managing expenses over the remainder of the year will be key and the NSA will continue to mitigate the overall impact to your business.”