PVC shortage

The video above is a really good description of what is happening. We are experiencing the same kinds of shortages for our products. We tried to keep no more than a 30 day inventory of raw materials and finished products. This has worked well for the last couple years. Our sales have ramped up over that time and we ordered ahead for anticipated sales (this is done with our magic crystal ball :grin: ). Normal delivery on raw materials was 1 to 2 weeks, and we kept our vendors in the loop so they could have stock available when we needed it.

Then in the last month or so the entire system broke down, no raw materials in the pipeline, with delivery times measured in months rather than weeks. Our machines have been shut down for the last couple of weeks waiting for materials. We have orders and near finished assemblies, but are waiting on specific components to be able to ship.

Fortunately my son was able to scrounge enough raw material yesterday to get the lathe running again, but had to pay a premium price for it. At least we will be able to fill the backorders and build some finished assemblies ahead for about 100 units. Right now it's looking like we may not be able to get more raw materials until September, and we won't have enough inventory to fill orders until then. This is not just affecting us, other local manufactures are having the same problem.

This is also going to trickle down to some of our other vendors, our powder coat and anodizing vendors are going to impacted because we won't be sending parts to them. Our parts are not going to make or break our finishing vendors, but multiply this by several small manufactures and it could have a serious impact.

We have enough raw material on hand right now to keep the machines running for a couple of weeks, but we may just take the rest of the summer off. :(
 
The video above is a really good description of what is happening. We are experiencing the same kinds of shortages for our products. We tried to keep no more than a 30 day inventory of raw materials and finished products. This has worked well for the last couple years. Our sales have ramped up over that time and we ordered ahead for anticipated sales (this is done with our magic crystal ball :grin: ). Normal delivery on raw materials was 1 to 2 weeks, and we kept our vendors in the loop so they could have stock available when we needed it.

Then in the last month or so the entire system broke down, no raw materials in the pipeline, with delivery times measured in months rather than weeks. Our machines have been shut down for the last couple of weeks waiting for materials. We have orders and near finished assemblies, but are waiting on specific components to be able to ship.

Fortunately my son was able to scrounge enough raw material yesterday to get the lathe running again, but had to pay a premium price for it. At least we will be able to fill the backorders and build some finished assemblies ahead for about 100 units. Right now it's looking like we may not be able to get more raw materials until September, and we won't have enough inventory to fill orders until then. This is not just affecting us, other local manufactures are having the same problem.

This is also going to trickle down to some of our other vendors, our powder coat and anodizing vendors are going to impacted because we won't be sending parts to them. Our parts are not going to make or break our finishing vendors, but multiply this by several small manufactures and it could have a serious impact.

We have enough raw material on hand right now to keep the machines running for a couple of weeks, but we may just take the rest of the summer off. :(

Well, you have earned a vacation....

In all seriousness there are lots and lots of small manufacturers in the US who are probably in the same position you are. This past year and a half definitely warrants some consideration of bringing supply chains back into this country and dealing with some increased costs. I'm pleased to at least be hearing policy makers considering how this could be accomplished.

John
 
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