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Profile Problems – What Happens If A System Ceases?
Ryan Johnson, the group managing director at the massive fabricator, Emplas, chews over the summer collapse of profile supplier Duraflex and asks what it...
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Perfect Storm Could Smash Through Glass Supply
A perfect storm of escalating energy costs and market instability as we move into the latter half of 2022 and into 2023 will put many glass companies under intense pressure, one glass company has warned.
The Cornwall Group said rising energy prices in 2023 will eclipse 2022 levels, putting greater pressure on glass companies to partner with stable suppliers and to pass on costs to customers.
“In recent weeks, a combination of production and quality issues from some of the major glass manufacturers, combined with their needs in some cases to support their European branches because of the conflicts in eastern Europe, have created a renewed and real issues of supply.”
– Mark Mitchell
Chair, Cornwall Group
Price rises
“This has led to tighter allocations and many customers suffering once again from shortages,” continues Mitchell. “This is likely to continue throughout 2022 and beyond. Increases during this summer and early autumn may well see prices rise by 25% to 30% in many cases.
“A horrid recipe and tangle of rising interest rates, scary inflation figures, product shortages, double digit price increases, national strikes and serious squeezes in both labour recruitment and retention are all leading to a second half of 2022 looking increasingly tricky and bumpy for many within our industry and the wider world.”
Price explosion
Cornwall Group had already started preparing for 2023, when many fixed energy prices are expected to come up for renewal. Companies have spent the last 6-18 months hedging or fixing prices, in a bid to take the sting out of the tail or offer some stability in the supply chain. But next year Cornwall Group expects the market to be put under greater strain when those deals come to an end and prices are increased across the board.
Bankruptcy
Mitchell adds: “Covid loans will need to be paid off, the cost of borrowing will inevitably increase and we will likely see some associated insolvencies, which will create holes in companies’ balance sheets.
Ducking and diving
“2023 will be when all the issues of the previous three years will come home to roost. But the Cornwall Group is in a very strong position to cope with these challenges, especially since we restructured the business in 2019 to focus on our core strengths.”
The group
Cornwall Glass Manufacturing – which now sits alongside glass merchanting business Mackenzie Glass and retail and installation-focused Cornwall Glass & Glazing – offers a range of options in IGUs and single glass, with three manufacturing facilities in St Austell, Highbridge and Plymouth.
Picture: Cornwall Glass & Glazing – offers a range of options in IGUs and single glass.
Article written by Cathryn Ellis
30th June 2022