Current market conditions are driving up the cost of many raw materials. So, if you’re a manufacturer or distributor, you may have recently been inundated with price increases across multiple areas of your business. These raw material rises are impacting production costs, leading to price rises for dealers and/or consumers. We take a look at what these market conditions are and how this volatility is impacting manufacturers and distributors in 2021.
Timber shortages are impacting the supply chain
The price of lumber is increasingly volatile and prices have more than doubled since the beginning of the year. In May 2021 it reached a record high point of 1700 USD (£1229) per thousand board feet, but it is now starting to cool and return to normal following a 40% drop since May’s peak.
Distribution Finance Capital Holdings plc (LON:DFCH) is UK specialist commercial lending and personal savings bank. From straightforward savings to practical finance solutions, our aim is to help customers manage and grow their business or savings. Founded as a specialist commercial lender in 2016, DF Capital was authorised as a bank in September 2020.