Top 5 Plumbing Industry Challenges in 2021. Part 2.

Last week we began to dive into the challenges our industry is facing in 2021 and how we project those disruptions to continue to impact the market moving forward. This week we'd like to look at how the industry is responding to these challenges (in February of 2021.) What tactical steps are businesses taking to combat the increased demand for quality fixtures? 

Key takeaways: 

• Factories & freighting companies are facing challenges of their own

The production line and freighting industries are facing challenges of their own. As they play an integral part in our industry alike so many others, it’s no wonder we are all feeling some sort of impact. Staffing issues due to Covid policies are directly impacting the supply chain. We are getting reports container ships are sitting out at sea waiting for up to 2 weeks to get a place in the port, and even after it's been unloaded it can take 4-6 weeks to get to the warehouses due to a shortage of trucks & drivers. Cite: "New video shows massive scope of California box-ship traffic jam." https://www.freightwaves.com/

• How is the industry responding?

Ok, so enough talk about the BAD. We get it, there are shipping delays from faucets to couches, paper towels to decor, but what are we doing about it as an industry?

Many companies are taking a look at their inventory and factories and changing up their formulas to allow for the increased lead times and ever-increasing demand. One remarkable discovery is that smaller companies are showing resilience and the ability to keep up with demand more effectively than the larger brands!

• Which brands are able to get inventory?

The smaller brands are usually more diversified with their manufacturers and have spare production. The industry behemoths on the other hand were humming at maximum efficiency before the Covid related disruptions happened, adding production is much harder and takes time to respond to. Asian-made products aren't taking as long as they don't have the same restrictions that European & US manufacturers are having, so those companies who have manufacturing in those locations are at a current advantage.

• Why are there continued major stocking disruptions in the industry? (continued)

As a broad view, increased demand from more & more homeowners remodeling coupled with a decrease in supply due to fewer workers available from Covid-19 restrictions has created a large strain on the supply chain. 

• How long will these stocking delays last? 

  (continued)

As the events happened as fast as they did, it takes a while to catch up, you can't just simply 'flip a switch'. We foresee delays stretching to the end of the year.