Global Issues Hit Supply Chain

Jamie Leo 5/6/2021

Shortage Strains Construction and Affects Plumbing and HVAC Industry

April 30, 2021 – When manufacturers and partners around the world were grappling with pandemic-driven upheaval last year, nobody imagined that HVAC and other industries might arrive in 2021 to look back on the previous spring's supply sitiuation as....simpler?

International trade has been disrupted by the pandemic, driving up the cost and availability of goods.  The HVAC/home services industry has been hit extremely hard.  Once widely available parts such as capacitors and coils, as well as plastics face shortages as the demand increases.  Availability is not the only volatile part, prices have also increased due to shipping issues.  Container ships carrying international goods are facing port backups as the demand for shipping stretches the demand for available containers. Everywhere you look, the Global Supply Chain is a mess. 

It has been a "perfect storm" of events from Covid-19 lockdowns to snow storms in texas, it seems overnight 10% to 15% of U.S. PE and PP production stopped.  And this was all followed by a slew of force majeures from big polymer prodcuers relieved of certain supply- delivery commitments due to circumstances outside of their control - not to mention labor and trucking shortages at ports. 

While Northeastern Supply is doing everything in their power to ensure the best selection of plumbing and HVAC products on the market, we are limited only to what our manufacturers are limited to on what is available for us to get.  "The last thing we want is to not be able to provide our customers with the parts and equipment they need," said Stan Allen, Northeastern Supply's President.  "But all we can do is encourage customers to be patient with us and try and get their order in sooner rather than later because the forecast is looking like delays and price increases are still on the horizon."