Blue-White CEO Rob Gledhill answered some questions from Pumps & Systems on the state of the industry heading into 2022.
1. How have price increases of products or materials impacted your company?
Price increases have had a tremendous impact on our company. Our costs on raw materials have gone up on average 7% to 8%. In some cases, we’ve seen prices temporarily surge 75% to 100% due to extreme supply shortages. As manufacturers, we want to build products for our customers, so we must pay elevated raw material prices. The price increases are rapid and unpredictable, forcing manufacturers to absorb the higher costs. I expect price increases in our industry to be higher than normal for the new year.
2. What issues have you seen with material shortages or supply chain issues?
Companies need to be creative when dealing with material shortages and supply chain delays. In one case, our vendor notified us that our order of motor bobbins was stuck in a container ship outside the port of Long Beach, [California]. Lead times for the motor bobbin usually is three to four weeks. Our vendor informed us that it could take over six months to receive our delivery. We decided to make our motor bobbins in-house to meet customer demands. Our team quickly made tooling and began manufacturing motor bobbins. The best part is our customers never even noticed a difference in lead time for the pumps they ordered. This is one example of many similar situations. I believe the “make it yourself” mindset has worked to our benefit during these times. I am proud of how resilient our team is. Manufacturers need to think differently about how to handle long lead times and shortages of goods. As the saying goes, necessity is the mother of invention!
3. What keeps you up at night?
The thought of industry innovation slowing down due to distractions caused by the current supply chain challenges.
4. What needs to happen in regards to industry improvements?
I believe companies need to plan ahead: order products earlier than usual, add padding in your schedule for unexpected delays in the delivery of goods, etc. Lead times are unpredictable, so you'll need to consider increasing your inventory.