October Industrial Spring Market Update
Supply Chain Disruptions Continue For Steel Spring Manufacturers
400% Pallet prices skyrocket due to lumber costs and shortages.
350% increase in steel prices between September 2020 and 2021.
170% observed increase in truckload rates since May 2020.
5x The Global Container Freight Index has nearly quintupled over the past 12 months
10x Shipping rates have jumped nearly tenfold since the start of the pandemic.
$20,586 median cost of shipping a standard container from China to the West Coast of The United States. That’s 2x what it cost in July.
43% increase in cost to ship products by road and rail in North America from July 2020-July 2021.
6 month lead time for steel and other raw materials
73 number of container ships anchored off of California this October, waiting for a berth.
10.4 million job openings in the United States in August 2021.
Zero — Number of Days of Spring Production Missed at Tennessee Spring and Metal.
Zero — Metal Spring Shipments Missed by Tennessee Spring and Metal.
Thanks to excellent planning and cooperation from our long-standing customers, we have missed zero, zilch, nada, 0 days of production and zero shipments due to Covid-19 or supply chain disruptions.
We’re Read to Spring into Action
We have a sufficient stock of raw materials to serve our existing customers through the rest of 2021. So that we can continue to serve you (and maintain our excellent production and shipment stats), please send us your forecasts for 2022 as soon as possible.
How Do We Reliably Deliver Your Spring Supply?
We’ve consistently made good on our promises and we have exceeded our customers’ expectations during the pandemic, while adhering to ISO 9001 and AS 9100 guidelines for high-quality, American-made springs.
We have been proactively securing wire and other raw materials well in advance of our existing blanket order customers.
We have avoided several price increases by purchasing wire well in advance, due in part to our customers’ cooperation in sending us their forecasts and orders well in advance.
We have been flooded with spring inquiries over the past year, but we have been forced to turn down any new business that would jeopardize our existing customers’ spring supply.
We have worked weekends and overtime to compensate for delayed shipments of raw material
What Can You Do to Help?
We want to keep our spring machines coiling, and your operations rolling. We also want to keep your spring prices as low as we possibly can.
How can you help us weather this spring manufacturing crisis? Send us your spring and wire usage forecasts as early as possible!
For more information about Tennessee Spring and Metal and our transparent price policies, contact us at 1-800-497-3545 or email us at info@tennesseespring.com.
Tennessee Spring and Metal is AS9100 Rev D, ISO 9001:2015 certified.
Infographic Sources: :
https://www.shiplilly.com/blog/pallet-prices-up-400-amid-shortage/
https://www.asicentral.com/media/36700/supply-chain-infographic.pdf
https://www.washingtonpost.com/business/interactive/2021/supply-chain-issues/
https://www.bls.gov/news.release/jolts.nr0.htm