2023 Market Outlook & Pricing Update
2023 Market Outlook and Pricing Update
This year has passed by so quickly! It is hard to believe that 2023 is only a couple of weeks away. We are so thankful for our partners and customers; we see many great things coming in the new year. Thank you for working with us!
As the year comes to a close, I am reviewing our performance and what adjustments are needed to continue providing the level of service you expect from Sidco. Thankfully, the supply chain and labor markets appear to be stabilizing. We are still seeing pricing pressure from the media suppliers as plastics, and fiberglass raw materials continue to rise. Metals have come down a bit which has helped, but oil costs have largely offset this. Labor continues to be the primary struggle for most, as the ongoing shortage of candidates will likely remain a problem.
Due to ongoing cost pressures, we are implementing a 3-4% price increase effective February 1, 2023. We have done a lot of work to improve our internal efficiencies and ensure that we have the most cost-effective supply chain. These efforts have helped keep this increase to a manageable level. Blanket agreements implemented before this date will carry current pricing throughout the contract.
Blanket orders and pricing contracts secure your ongoing business and ensure you can minimize supply disruption and further cost increases. Please let me know if you have questions or would like to work through scenarios on how to do this effectively.
If you would like to discuss mitigating this price increase by placing a blanket order or quantity agreement, please give us a call or send an email to email@example.com.
As always, we appreciate the work that you do and our partnership. I look forward to working with you into the new year.