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Can I get a discount? Circa Summer 2021
Starting in Mid-year 2021 there have been price increases from all vendors. I am including some of these on the website to let you know it was not Garagfeet increasing cost without a reason. Understand we are aware of the shortages and the cost issues. ALSO Remember, FUEL has risen over 50% which is how we get to your home or business every day. The pressure that we are facing is daunting.
I look forward to a robust economy based on growth of this economy, stability in the consumer and construction sectors, ability to hire talented workers, and entrepreneurial business acumen.
Coastal Construction:
July 12, 2021
To Our Valued Customers:
We have received notifications from several manufacturer partners regarding material surcharges. Raw
material prices and shortages, increased costs and shortages of plastic packaging and freight are all cited as contributing factors.
The following were announced:
AccuTec Blades – 10.5% surcharge effective June 28,
2021
Dayton Superior – 4% surcharge effective July 12,
2021
HP Fuller / Gunther – 15% surcharge effective July 15,
2021
Sika Commercial RS&B – additional 3% surcharge
resulting in net surcharge of 10% effective July 19, 2021
Sika Liquid Applied Membrane (RoofPro) – additional 3%
surcharge resulting in a net surcharge of 5% effective July 19, 2021
Below are previously announced surcharges now in effect:
Master Builder Solutions
- 20% surcharge on Epoxy Resin products effective June 14, 2021
- 15% surcharge on select products from its MasterTop SRS line effective June 14, 2021
- 6% surcharge on all other products effective March 11, 2021
Neogard – 6% surcharge on all Neogard Products effective
July 1, 2021
Owens-Corning - Transportation surcharge for mineral wool
products
Pecora – 6.5% surcharge effective March 15,
2021
Sika Greenstreak – remains at a 4% surcharge
Sto – 5% surcharge effective April 1 on polymeric
based products and all basecoats
Tremco Construction Products Group – 7.5% surcharge
effective June 1, 2021. This surcharge will be levied on all products except Willseal.
We will continue to update you as we are advised by our manufacturer partners.
Floorguard:
Dear Floorguard Products Customer,
This email is to advise you that there will be an increase of 10% for our epoxy line effective
immediately. When you log on to your online account, you will see the updated pricing in place.
During the past year, Floorguard Products has seen unprecedented raw material price increases due
to the nationwide shortages. We pride ourselves in keeping costs down to give you the best resinous coatings in the industry at the best value possible. This is a temporary increase until raw
material prices stabilize.
SIKA: Global Materials
Shortage, Supply Disruption and Cost Escalations
Dear Valued Customer:
As we and others have communicated this year, the resinous flooring industry continues to face significant impacts to raw material supply and to experience severe logistical disruptions caused by a variety of factors.
Beginning in late 2020 and into 2021, catastrophic incidents and severe weather events led to plant closures and declarations of “force majeure” by multiple suppliers of raw materials for the flooring industry. Inconsistent service levels across all logistics categories caused frequent outages of our inbound materials and has impacted our ability to provide timely delivery of product to job sites. Additionally, the unprecedented demand for construction materials, as we begin to rebound from the effects of the Covid-19 pandemic, has compounded the negative effects of the aforementioned events thus causing greater expansion of lead times for providing materials to your projects.
Following is a brief recap of the many factors adversely affecting our industry’s supply chain:
Epoxy Shortage: An explosion and a fire in Asian chemical plants late last year triggered a global shortage of epoxy coating constituents.
Severe Weather Events: The 2021 winter storm Uri impacted the production of petroleum based and other industrial chemicals throughout the Southwest. Significant volumes of standard truck and intermodal freight were removed from service during this crisis. The El Derecho storm, which impacted parts of the Midwest, caused further havoc and disruptions to trucking and logistics.
Truck Driver Shortages: The trucking industry moves nearly 71% of all domestic freight. Driver personnel is woefully undersupplied, and the industry will need to hire 1.1M drivers to keep up with current demand.
Global Logistics: Ports of entry worldwide are experiencing significant delays off-loading cargo ships. Some ports have experienced delays up to three weeks. The overall lag in turnaround has effectively reduced shipping capacity by over 5%. Air freight is experiencing unprecedented troubles as well. Capacity is down 12% and demand up 25%.
Suez Canal Obstruction: As one of the world's busiest trade routes, the canal’s obstruction prevented an estimated $9.6 billion worth of trade from occurring. The blockage delayed a range of raw materials from reaching the United States. Even though this trade route has been opened, the United States continues to be affected by the closure.
Shipping Containers: There are not enough boxes available to service the volume of goods to be shipped. Multiple factors have driven this situation including increased demand of consumer products during COVID, out of balance trade routes and inability of manufacturers to produce new units.
Government Stimulus: With government aid, United States’ businesses and consumers have ramped up spending, adding to the already significant supply/demand imbalance.
Labor Shortages: The Labor Shortage we are all dealing with, has made it increasingly harder to find labor and this has especially affected manufacturing facilities and the ability to secure and obtain raw materials.
Trade Wars: Analysis by Goldman Sachs found that the consumer price index for nine categories of tariffed goods had increased dramatically compared to non-tariffed goods.
Due to these significant and unprecedented events, suppliers and manufacturers for the construction industry are struggling to keep up with demand and to accurately project the rapidly increasing costs of materials. Sika has not been immune to these events and has been impacted as well. These force majeure events are global and have affected virtually every business, but as you are aware, especially hard-hit the construction industry.
The shortages in raw materials have increased lead times and driven rapid increases in prices from suppliers. We have issued a number of pricing bulletins to date indicating the need to raise our prices on all products to reflect the reality of the situation.
Despite all these challenges and the unforeseeable obstacles which the future may bring, Sika remains committed to providing you with the highest level of service and products and furnishing materials to you as quickly as possible for you to perform the work for your customers. To do so, we seek your support and flexibility as we continue to navigate the current crises.
Therefore, we appeal to you and your customers to understand that:
1) Our current prices reflect the significantly higher costs to secure materials for projects due to these unforeseen and unanticipated events.
2) Resulting from volatile and rapidly increasing costs, we may be unable to hold pricing for materials previously quoted.
3) Because of overwhelming shortages, there may be delays in our ability to obtain the materials necessary to supply you and your projects. Although these delays are beyond our control, we will do our best to keep you up to date as possible.
In closing, we appreciate your support and understanding during this time. Your business and partnership is of utmost importance to us and we strive daily to find every possible way to minimize these negative effects on your operations. Please feel free to pass this letter along to any of your customers who have questions about the current supply chain situation. If you have any questions or concerns, please do not hesitate to contact us so we can best assist you during this time.
Sincerely,
The Sikafloor Team
Dear Valued Customer:
As we and others have communicated this year, the resinous flooring industry continues to face significant impacts to raw material supply and to experience severe logistical disruptions caused by a variety of factors.
Beginning in late 2020 and into 2021, catastrophic incidents and severe weather events led to plant closures and declarations of “force majeure” by multiple suppliers of raw materials for the flooring industry. Inconsistent service levels across all logistics categories caused frequent outages of our inbound materials and has impacted our ability to provide timely delivery of product to job sites. Additionally, the unprecedented demand for construction materials, as we begin to rebound from the effects of the Covid-19 pandemic, has compounded the negative effects of the aforementioned events thus causing greater expansion of lead times for providing materials to your projects.
Following is a brief recap of the many factors adversely affecting our industry’s supply chain:
Epoxy Shortage: An explosion and a fire in Asian chemical plants late last year triggered a global shortage of epoxy coating constituents.
Severe Weather Events: The 2021 winter storm Uri impacted the production of petroleum based and other industrial chemicals throughout the Southwest. Significant volumes of standard truck and intermodal freight were removed from service during this crisis. The El Derecho storm, which impacted parts of the Midwest, caused further havoc and disruptions to trucking and logistics.
Truck Driver Shortages: The trucking industry moves nearly 71% of all domestic freight. Driver personnel is woefully undersupplied, and the industry will need to hire 1.1M drivers to keep up with current demand.
Global Logistics: Ports of entry worldwide are experiencing significant delays off-loading cargo ships. Some ports have experienced delays up to three weeks. The overall lag in turnaround has effectively reduced shipping capacity by over 5%. Air freight is experiencing unprecedented troubles as well. Capacity is down 12% and demand up 25%.
Suez Canal Obstruction: As one of the world's busiest trade routes, the canal’s obstruction prevented an estimated $9.6 billion worth of trade from occurring. The blockage delayed a range of raw materials from reaching the United States. Even though this trade route has been opened, the United States continues to be affected by the closure.
Shipping Containers: There are not enough boxes available to service the volume of goods to be shipped. Multiple factors have driven this situation including increased demand of consumer products during COVID, out of balance trade routes and inability of manufacturers to produce new units.
Government Stimulus: With government aid, United States’ businesses and consumers have ramped up spending, adding to the already significant supply/demand imbalance.
Labor Shortages: The Labor Shortage we are all dealing with, has made it increasingly harder to find labor and this has especially affected manufacturing facilities and the ability to secure and obtain raw materials.
Trade Wars: Analysis by Goldman Sachs found that the consumer price index for nine categories of tariffed goods had increased dramatically compared to non-tariffed goods.
Due to these significant and unprecedented events, suppliers and manufacturers for the construction industry are struggling to keep up with demand and to accurately project the rapidly increasing costs of materials. Sika has not been immune to these events and has been impacted as well. These force majeure events are global and have affected virtually every business, but as you are aware, especially hard-hit the construction industry.
The shortages in raw materials have increased lead times and driven rapid increases in prices from suppliers. We have issued a number of pricing bulletins to date indicating the need to raise our prices on all products to reflect the reality of the situation.
Despite all these challenges and the unforeseeable obstacles which the future may bring, Sika remains committed to providing you with the highest level of service and products and furnishing materials to you as quickly as possible for you to perform the work for your customers. To do so, we seek your support and flexibility as we continue to navigate the current crises.
Therefore, we appeal to you and your customers to understand that:
1) Our current prices reflect the significantly higher costs to secure materials for projects due to these unforeseen and unanticipated events.
2) Resulting from volatile and rapidly increasing costs, we may be unable to hold pricing for materials previously quoted.
3) Because of overwhelming shortages, there may be delays in our ability to obtain the materials necessary to supply you and your projects. Although these delays are beyond our control, we will do our best to keep you up to date as possible.
In closing, we appreciate your support and understanding during this time. Your business and partnership is of utmost importance to us and we strive daily to find every possible way to minimize these negative effects on your operations. Please feel free to pass this letter along to any of your customers who have questions about the current supply chain situation. If you have any questions or concerns, please do not hesitate to contact us so we can best assist you during this time.
Sincerely,
The Sikafloor Team
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