Thursday, June 16, 2022

World Events and Furniture Supply

World events and Furniture supply

In the UK the fallout from Brexit, Russia’s War in Ukraine and Cost of living has managed to reach the world of Care Home Furniture. We are going to explain why the economic effects of these events have contributed to a number of challenges in the supply and manufacture of Care Home Furniture.

Rising Costs in Timber and Raw materials

Because of Russia’s decision to try and invade Ukraine timber prices have sky rocketed. This is because Russia is a major exporter of timber and is home to a fifth of the world’s trees. Various self-imposed sanctions and sanctions from other nations have slowed this major supply route.

Renray Healthcare and many other companies in our care home marketplace have noticed significant knock-on effects from this. Some can weather the storm better than others due to warehousing facilities and surplus supplies in factory.

Supply of timber from Europe and Russia had been slowed by the Covid pandemic and this only seeks to exacerbate the problem.

However, on the plus side this has been seen as a wonderful opportunity to utilise the growth of the renewable Scottish timber trade, which has recently received new government funding.

Energy Costs

The UK isn’t as reliant on Russian energy as other European nations, which is useful. Manufacturing is expensive in terms of energy consumption and although steps have been made to become more sustainable it is still a huge part of any care home furniture manufacturers outgoings. Due to post Covid increases in demand of petrol (Very cold European winter and hot weather in Asia saw higher demand in gas necessary for air-conditioning), higher import costs, low European fuel reserves… and then sanctions on Russian gas - fuel and energy prices have risen further. Subsequently,  these rising costs have now started to have knock on effects for the consumer.

If you have any further questions regarding prices contact us here…

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