Thank You to Our LOYAL Customers
Between inflation, labor shortages, and a pandemic, commerce has been pressurized the past nineteen (19) months. It truly is a perfect storm of factors that are impacting businesses and ultimately our customers. Costs of some materials have more than doubled while at the same time, staff is harder to maintain and secure. Concurrently, demand for our precast products remains high.
This all started back in the Spring. The cost of materials started soaring and availability of supply started dwindling. ATMI Precast, and many other businesses, are having to make some very difficult choices from a pricing standpoint. We have been purchasing and stock piling necessary materials so that we can maintain production. This has been a significant outlay of capital as we are seeing increased material costs for 2022.
In addition to the cost of materials soaring, wage inflation is spiraling upwards. There are simply not enough people willing to work to meet the current demand. There was a huge amount of people that left the workforce who after the pandemic did not return. That left a huge void in the labor field.
The pandemic is still a lingering cloud in this storm as well. We went through COVID where our production plant had to scale back, and other facilities had to stop production completely. You realize that your whole world is like a machine. Everything must operate accordingly for a project to be successful.
Because of a combination of these factors, our team is having daily conversations with our customers regarding schedule, price, and commitments. We are having to rework materials costs on current and upcoming projects. Many manufacturers are offering pricing proposals to contractors that expire after just one (1) to three (3) days. We are asking our customers for patience with shortages and delayed schedules. Our customers are responding with appreciation for the transparency on our end. However, we understand the frustrations our customers are feeling. We are working more closely with Developers to ensure that we are doing everything on our end to hold down pricing. We are also heavily engaged with the General Contractor community, so we are working with them daily to allow them to work other site areas and utilities while the building construction is pushed on schedule.
We are trying to identify the future patterns and what habits are going to be moving forward so we can better identify how we plan for 2022 and beyond with the increased demand in the market. Up until 2020, there had been somewhat of a consistency with patterns and trends. You performed an action and knew what the reaction was going to be. Now we are seeing a huge change, and we are looking at things with a different lens. The development and contracting community have had to rethink their approach to these market conditions.
For all the conversations that have needed to be had over the past year, we wanted to extend a HUGE thank you to our customers! Simply speaking, there would be no us without you. Your loyalty means everything to us. We are working diligently to be the best that we can be in our field. Please know that we are committed to doing what we can to meet demand, satisfy our customers, and continue to provide precast solutions. Thank YOU for being our customer!