As interest rates continue to rise in Australia and around the world to combat the run-away inflation, the supply chain crisis has somewhat eased with delivery times and supply improving in comparison to the last few months. The ripple effects of the crisis and run-away inflation however, continues to deepen in Australia as costs of various goods and building supplies continues to head in an upwards trajectory.
There has already been widespread rumours that building giant Metricon may be having liquidity troubles, as fixed-price contracts continue to wreck wide-spread havoc within the construction industry. Whilst the supply chain crisis and velocity of the rate hikes may have peaked, the inertia of the current increase in material costs may mean that the worst is yet to come.
The energy crisis in Europe and around the world will also contribute to the rising costs of certain energy-intensive materials like glass, which has wide-spread application within kitchens, staircases, bathrooms and balustrades common in commercial and residential dwellings. Timing when to act on critical renovations is an increasingly tricky task, as material and resource shortage result in atypical wait times.
At Simply Frameless, we try and mitigate these global issues by using a practical and honest approach, both to our clients and suppliers. Being transparent and reasonable during these tricky economic times means that we are able to set the expectations right, both to our suppliers and our customers, whilst working out a mutually acceptable outcome benefitting all parties involved. No business can be sparred from this global economic crisis, but to us, the key is to approach it with a realistic expectation based on the aforementioned constraints.
Get in touch with us to see how Simply Frameless can potentially help with new builds and renovation projects.