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Associate Member Article

 

 

Unprofitable contracts - solutions for ever increasing raw material prices

June 2022 

The current cost of living crisis is not just a problem for consumers but is also a problem for manufacturers and suppliers. With inflation in the UK at 7.8% in April 2022, the after-effects of the pandemic coupled with significant gas and electricity prices arising from the war in Ukraine, many businesses are feeling the pinch from these exceptional increases in the cost of raw materials and fuel. For parties tied into longer-term supply contracts at fixed prices, these exceptional increases will be having a direct effect on profitability. What is not clear is how long these inflationary issues will continue or indeed how steep the increases will be...

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