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costs – with the cost of shipping containers rising by at least 400% in the past year, and door-to-door shipping times increasing from 41 to 70 days in the same time period.
Add to this the HGV driver shortage – impacting the UK in particular in the wake of Brexit – which is seeing containers stacked up at ports once they do manage to reach our shores, and it all makes for rather grim reading.
What lies ahead?
The phrase ‘this too shall pass’ comes to mind – while an unlucky combination of factors has come together to create the perfect storm (or perfect headache) for manufacturers and suppliers, there is hope that we can emerge from that storm. And it feels likely that ‘just-in-time’ may be replaced with a preference for larger stock reserves across the electrical sector and beyond.
“Preparations need to be made throughout the supply chain – that’s why I’m urging wholesalers to act fast to try and secure stock. With months of disruption ahead, it’s crucial that they’re able to continue off ering products to installers else they risk a signifi cant impact on their business.”
At Niglon, we had taken the decision to increase our stock levels by 30% - and keep them at this higher level on an ongoing basis. We had sound business reasons for the choice, but could never have predicted the events which would unfold afterwards – we were lucky that the decision put us in the best possible position to weather what was to come, and looks set to keep us running as
Niglon is a fourth-generation family owned and run company, which can trace its roots back to the 1940s. They have an extensive range of more 4,500 products across eight core categories: circuit protection, wiring accessories, installation essentials, industrial accessories, cable management, lighting control, ÿ xings and tools, and control and automation.
normal as the global problems continue. Preparations need to be made throughout the supply chain – that’s why I’m urging wholesalers to act fast to try and secure stock. With months of disruption ahead, it’s crucial that they’re able to continue off ering products to installers else they risk a signifi cant impact on their business. And this isn’t just a case of getting through until ‘normality’ resumes. The situation should act as a wake-up call to everyone in the electrical industry that we need to keep preparing for the worst. That’s not pessimistic – it’s simply a more sensible way to run a business than adopting the ‘just-in- time’ approach.
Because even when the shipping delays and Chinese electricity crisis are resolved, there will undoubtedly be permanent scars left from the pandemic, Brexit, and economic slump, and that’s why continued higher stock levels are – in my opinion – something we should all be aiming for.
ewnews.co.uk March 2022 electrical wholesaler | 31
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