CHIC works collaboratively with the materials supply chain to better understand the potential supply related issues that may arise due to Brexit, as well as the knock-on effect of Covid 19. This close partnership has allowed CHIC to maintain an understanding as to how the supply of materials has been affected in the short term as well as the commercial and operational impact this will have on our members.

This strong relationship has allowed CHIC to continue to bring our Members the highest possible savings in what is an ever changing market.

CHIC has seen applications for price increases across a multitude of product categories as described below. We aim to keep you, our members aware of the market changes and also where possible where we have managed to negotiate a reduction in the proposed increase.       

Many suppliers are experiencing cost pressures caused by increased demand (nationally and internationally), limited supply, import/customs restrictions and particularly new material price increases in their own supply chain.  Pressures are further exacerbated by some shortages of labour, addition to the cost of manufacture.  The ‘noise’ across the construction sector is currently notable, creating real concerns about real cost inflation.  

CHIC’s relationship with our supply chain requires a notice period between notification of price increases and these taking effect.  During that time, the CHIC commercial team works with each supplier to mitigate the level of any increase, to ensure that members still access materials at the best current rates.

Here are a few headlines from recent market activity:

• Requests for price increases across 17 different product areas
• Price increase requests ranged from 3% to 20%
• Increases agreed range from 2% to 16%
• Some increases proposed were at rates already reflecting CHIC’s members combined ‘purchasing power’ and have been agreed
• Whilst for others, reduced levels of increase have been agreed
• Increases have been introduced progressively since April, but some are not due to take effect until August/September

The CHIC team is working hard with our supply chain partners to mitigate any cost increase and with our members to keep them informed of the changes.

The experiences of the last few months bear out the ground level of increases predicted by the ONS and the wider impact on inflation for the next couple of years, now predicted by the Bank of England.

If you would like any more information, please do not hesitate to get in contact with one of our Heads of Membership Services.

Stephen Sharman

 
Victoria Speakman

Head of Member Services (South West & Wales)
07793 071784
vspeakman@chicltd.co.uk
 
Lesley Dixon

Head of Member Services (Cumbria & North West)
07840 537979
ldixon@chicltd.co.uk