At the Norgesvinduet Bjørlo factory in Nordfjord in Western Norway, 135 employees are back at work after the summer holidays. But certain metal parts that are necessary for production are challenging to get into the country. – We, like everyone else, struggle to get hold of raw materials in time, daily manager Hans-Roger Starheim tells us. In NHO’s member survey, the organization has asked member companies how price increases and supplier problems have affected operations. Then almost half of the companies answered that the raw materials are far more expensive than normal and almost half stated that they would increase the retail prices more than the general price increase. In addition, one in five companies answered that they had to change suppliers as a result of the war in Ukraine. The price increase will be noticed in all sections. From factory to end user, says Starheim. – We cannot take the price increase alone, we take a part, our customers take a part, but the end users have to take a part of the costs for our challenges, says Stadheim. Increase in costs for housing construction – We have had very high raw material costs for wood, steel and other materials, in addition we have an internationally demanding situation, says Lars Jacob Hiim, managing director of Boligproduktorenes Forening. The association reports that the sale of residential buildings has decreased by 38% in June 2022 from June 2021. – It is the lowest sale we have seen on new residential buildings since the financial crisis, says Hiim. In addition, the increased rent has had a double effect in that it affects both home buyers and developers, he adds. DECLINE: The sale of new houses has slowed down. – The window manufacturer is symptomatic of the problem. Many companies struggle with the same problems as the manufacturer in Nordfjord, says Knut Sunde, industry director at Norsk Industri. Bankruptcies, shipping problems, the war in Ukraine and the aftermath of the pandemic are things he highlighted as obstacles. SMALL PARTS: Can cause big problems if you depend on them. Photo: Harald Kolseth / news You also don’t have to be a big consumer of a raw material for it to cause problems, like the factory in Nordfjord: – He doesn’t use a lot of steel, but enough that if he doesn’t get hold of it, everything stops, says Sunde. Not everyone has the same amount of compensation, some producers can profit from the price increase. – Those who have shot the golden bird are the ones with the end product in the drag of increased prices, says Sunde. As producers of fertilizer or silicon. Aluminum producer Hydro has delivered record results for five quarters in a row. Must take the challenges as they come Making long-term plans is no longer possible, according to Bjørn Lødemel, day-to-day manager of Sogn og Fjordane Business Council. – The planning you could do in the past, where you looked far ahead, is just to be put away, says Lødemel. Companies have to think completely differently, take on challenges faster and follow up much more closely than before, he says.
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Struggling to get enough raw materials – news Vestland
