Rising prices of raw materials, as well as labour costs, are here for the long term, as ongoing supply chain issues continue to affect businesses around the world, according to BM Catalysts.
The company has highlighted the problem, citing a 20% increase in the price of stainless-steel tube, since the start of 2022 alone.
This, combined with a 100% price increase in slit coil used in various components and a 40% increase in the price of other materials used in the production of catalysts, diesel particulate filters (DPFs) and pipes, means volatility in the market looks set to continue well into the year.
There have also been significant increases in overall labour costs, primarily down to a shortage of skilled workers, the company reported. These costs are expected to continue rising across the business as the result of national living wage changes in April, and are further exacerbated by significant increases in logistics, packaging and production costs seen in quarter four of 2021.
Mark Blinston, BM Catalysts’ commercial director, said: “As a leader in the manufacture of catalytic converters and DPFs, we are always analysing the market incredibly closely and we’re continuing to see unpredictability in the costs and supply of a number of essential materials.
“Furthermore, there is a real shortage of skilled workers, which makes retention and recruitment of direct labour much more challenging, and ultimately it’s lead to significant cost increases in that area of the business. Increasing capacity is a key strategy for us, as we continue to experience growing demand across our range of products and it is clear to see that to do this, labour costs have to increase.
“We will continue to work closely with customers to ensure we can meet the demands of the global market with our industry leading levels of availability.”
Meanwhile, some good news! BM Catalysts has been awarded Premier Data Supplier status by TecDoc.
In 2021, a new quality standard was launched, which requires data to be supplied with additional validations and key performance indicators, with BM Catalysts making the grade.
Mark said: “We take great pride in the quality of our cataloguing to help ensure customers are able to accurately identify the parts required and avoid any of the potential pitfalls that can occur when selecting parts. Being recognised as a Premier Data Supplier is fantastic news, and a true testament to the efforts of our dedicated product development and cataloguing teams.”
The use of Xchecker management software has also helped the company on its way to achieving the highest data quality for parts look-up systems and exceed the required standards for TecDoc’s award.
