News headlines and financial
markets have been dominated by the tensions in Ukraine this week, which culminated
in Thursday’s invasion by Russia. Our sympathies are with the millions of
people affected by this tragic turn of events that will inevitably have a large
At these difficult times our customers expect us to remain focused on ensuring we have the products they require when they need them. With that in mind, we share below some of our thoughts on potential impacts to what’s been happening.
Will there be material shortages?
At this time MacLellan’s are holding significantly higher stocks than we were 12 months ago and we have robust supply chains in place to maintain these levels. We are already seeing some extensions to lead times, both from inside and outside of Europe, however there are no indications yet of major shortages in any specific raw material. As always we urge customers to place forward orders as early as possible to secure your requirements, this also allows us to plan our own production schedules well in advance.
Are prices going to rise?
Raw material prices have jumped as they always do when such significant shocks occur, however we forward plan up to 20 weeks in advance so are able to secure materials at the best price.
We have also seen further spikes in shipping costs and whilst we anticipate that these will be short lived as markets calm, we cannot be certain, and should they be maintained will need to be passed onto customers.
For now customers can rely on their current price lists and be assured we will give as much notice as possible about price changes.
Please contact your account manager should you have any long term projects and will try to assist with firm price commitments where we are able.
Will Lead Times Increase
As mentioned previously, MacLellan are currently holding significantly higher stocks at our UK sites than previously. Whilst this doesn’t guarantee availability to meet every demand, we are confident that we can support our loyal customers with the material they need.
Special manufactured materials have seen lead times increase over the last two years we anticipate a further increase of up to two weeks whilst markets and shippers adjust to current events.
The events of the week have forced us to review and evaluate our business activity and whilst we are pleased to say our reliance on Russian sourced raw materials is minimal and easily transferred to non-Russian sources, however our concern for those directly affected by the invasion of Ukraine remains high and we we can only hope this is resolved quickly and peacefully.