Good news despite raw materials crisis

The entire building sector is suffering from a lack of raw materials and rising prices. Wood, steel, insulation and plastics are currently scarcely available. Construction projects are being delayed. The electrical sector is affected both directly and indirectly. Wholesalers and craftspeople are becoming restless. In this situation, Michael Büenfeld, Managing Director for Sales at OBO Bettermann, has a calming message: "OBO is fully able to deliver."

The electrical trades fear that they could lose their role as an economic powerhouse in the coronavirus crisis. "Paradoxically, companies could suffer, despite having full order books and increasing demand. Orders can no longer be processed due to the increasing delivery bottlenecks in almost every product relevant to us," explained Lothar Hellmann, President of Zentralverband der Deutschen Elektro- und Informationstechnischen Handwerke (ZVEH) in a letter to the German Minister of Economics, Peter Altmeier. The electrical trades are particularly concerned by a lack of materials, delivery bottlenecks and dramatic price increases. In recent weeks, the situation of companies in the construction and finishing trades has only got worse. Price increases cannot simply be passed on to the customers. "Political attention to our plight is essential," explained Hellmann.

He is demanding an extension of short-term working benefits to at least the end of 2021 as an aid to companies who have to register reduced working hours, despite full order books. The state and municipalities should set an example and not claim any contractual damages and should adapt contracts flexibly. In addition, the liability situation of the electrical trades towards private customers should be made less acute, as should impending conventional penalties. In the long term, the dependency on suppliers from Asia and the USA must be reduced.

"Who would have thought that roof battens or gravel could be in short supply?"

Ulrich Bettermann supports the initiative of the association president and says: "I have never experienced such a market situation in 50 years." The electrical industry ensures as a whole "that our economy is functioning and that companies, the state and public can be supplied with energy". Therefore, there can't be enough activities aimed at improving the situation. If, in the previous year, a tonne of steel cost 500 euros, OBO now has to pay three or four times that price. "Who would have thought that roof battens or gravel could be in short supply?" wrote a surprised Bettermann to Hellmann.

OBO would also have to raise its prices. However, the supply security of customers and partners was of the highest priority. Ulrich Bettermann concluded: "Our warehouses are well stocked and my Purchasing department is expanding the number of suppliers, so that we in turn are able to supply others."