In a perfect world supply adjusts to demand, and prices are stable and affordable. However, both supply and demand can fluctuate during political instability leading to conflict. Who would have thought, two years ago that a microscopic virus could have a similar effect?
Simultaneous Disruption of Supply and Demand
Market stability usually only affects one side of the supply and demand balance. If a significant manufacturer closes down, this throttles supply and prices may rise. However, if an alternative product enters the market, demand and price may fall for an old favorite.
The COVID-19 epidemic disrupted both sides of the market in which Valiant Exteriors trades. Canadian lock downs cost jobs, and those lost jobs throttled orders. Our suppliers introduced strategies to survive the impact. This meant less product available on the market.
Delay in Getting Supply and Demand Back to Normal
Our industry is still working through uncertain times. Warnings of new virus variants igniting fresh surges are causing uncertainty. As a result, our material suppliers have not increased their material flow back to pre pandemic levels.
These pressures are causing our material prices to rise, while at the same time many of our customers are still facing economic challenges. We wrote this article to explain the situation we find ourselves in, and how we are adapting to continue providing quality service.
The Supply Situation We Find Ourselves in Now
Some of our suppliers have completely run out of materials, because their demand has increased beyond which their traditional sources can cope. Their input prices are rising as they scramble for alternatives. We understand this, we are all trying to survive, and hopefully grow.
Other factories have trimmed their product ranges to concentrate on the most popular ones. This is a great disappointment to our customers who set their hearts on a particular colour, or finish. They, like the rest of us wish things returned to normal. However, this will still take a while longer to materialize.
How Valiant Exteriors is Meeting Customer Expectations
We are pleased to confirm our business is regrouping, thanks to loyal customer support. We are working with each one individually, to chart a way through temporary material shortages. This means shuffling jobs depending on what’s available at the time, and keeping customers up to speed with progress as we always have done.