Bed retailers have been warned that they will continue to face price rises and extended lead times as manufacturers struggle to cope with a series of issues including raw material shortages, higher costs and logistic problems.
One manufacturer warned that it expected to have increase prices further, despite charging more than a third more compared with pre-pandemic prices. ‘The impact on prices means that a bed I sold to a retailer for £250 in January 2019 is £335 in April 2021 and may increase even further,’ they said.
According to a National Bed Federation poll of members, prices are increasing daily across foam, springs, timber, chipboard and even fabrics. Members reported that foam continues to be on allocation with further price increases being forecast after an 40% increase so far; wire prices continue to rise as steel remains in short supply in Europe after a 30% increase; timber has seen 20% plus increases with USA building and DIY trades ‘sucking all the capacity’ from wherever they can get it, along with demand for housing/garden furniture far exceeding supply.
With foam manufacturers facing unprecedented increases in prices paid for key chemicals such as TDI and polyols one md said the situation had been exacerbated by Europeans not driving or flying: ‘As many of these chemicals are bi-products of the oil industry this means there are considerably less bi-products available, thereby driving prices ever higher.’
Freight costs, fuel rises and an increase in paperwork and surcharges for Northern Ireland and European exports were also playing a role in price hikes according to members. One said the rises are being driven by a huge increase in global demands for these commodities – and if suppliers didn’t pay the increases, he claimed they simply didn’t get supplied.
This comes on top of massive increases in shipping costs with many companies struggling to secure containers.
Companies remain nervous about the stability of the supply chain, predicting it could be 12 months before any semblance of normality returns. This would not be helped by the likely impact of the end of the furlough scheme in September. ‘Even though people think we are out of it, there are many issues affecting human resources. Staff wanting summer holidays all at the same time, or extended leave to allow for quarantine might become an issue this summer – some employees have suggested if we don’t allow them a month off they will leave,’ one company owner said.