AFTER THE RISE COMES THE FALL, DOESN’T IT?
Various political/geopolitical developments are still putting the construction industry under considerable pressure. Construction costs have skyrocketed, house building is stagnating and increasingly fewer projects are being awarded. Most people will be aware of this by now. The war in Ukraine, high energy prices and increased inflation all made a dent in the proverbial wallet last year. Raw material contracts were also unilaterally cancelled, resulting in huge surcharges.
At that time, we searched for solutions so we could still offer our customers price certainty on a tender or order without us facing unpredictable business risks. We opted for a separate raw material surcharge and fuel surcharge.
This was a fair system that evolved with raw material and fuel price developments. However, with the market decline we’re now seeing a reversal in this movement: the reduction in raw material and fuel prices is underway.
We had previously introduced a raw material surcharge, which enabled us to pass on the huge increases to our customers. But now that the situation is reversing and prices are falling, we think it’s time we passed on this reduction to our customers too. After all, in a long-term customer relationship, you should be there for each other. In good and less good times. That’s why new orders placed and produced from 15 May will be allocated a raw material discount.
Orders already placed and already produced prior to 15 May will be delivered as agreed.
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