03 August 2021
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Armacell's Malte Witt
Insulation specialist Armacell says it is striving to offset the impact of rising prices for raw materials during the Covid pandemic.
Prices have increased significantly in recent months, at times reaching new all-time highs, and what initially appeared to be a short-term cost increase in the raw materials industry has now developed into an acute situation with far-reaching consequences for all those involved in construction.
The demand for many raw materials has increased considerably throughout the world and, as a result, prices are rising and the current raw materials shortage is leading to stockpiling.
Guillerme Huguen, Armacell chief strategic development officer & chief purchasing officer, said: “A pandemic on this scale has incalculable consequences for the global flow of goods and presents extraordinary challenges for our closely interconnected world.
"The construction sector as a whole and we as insulation manufacturers are under enormous price pressure. We are currently experiencing an unprecedented price explosion as far as our material and operating costs are concerned. All types of plastic are affected by these drastic price leaps.”
Malte Witt, Armacell vice president EMEA & chief marketing officer, added: “In recent months, we have made enormous efforts to minimise the risks resulting from the current difficult situation for our business partners. However, with prices for our raw materials, operating supplies, energy and logistics continuing to rise, our options in this extremely tense situation on the market are limited.
"We realise that in this phase it is crucial that our customers are able to plan, and therefore we inform wholesalers and installers about developments in good time. We want to prevent installers being left to bear the higher costs and recommend that they include provisos to cover price increases in their quotations. In these difficult times for all of us, strong and reliable partnerships are more important than ever.”
