In a turbulent, unpredictable world, the only certain thing is uncertainty! The impact of Covid-19 is a double-edged sword.
Lockdowns around the globe worldwide trade diminished both demand and manufacturing. Shipping became incredibly expensive as vessels could not optimize their loading. Shipping companies tried to recover their balance sheets by scraping around 630 container ships.
Roughly 90% of goods are transported by sea and demand now outstrips capacity as world trade bounces back. Shipping companies are now making double-digit margins and commissioning new vessels but these won’t improve the capacity of the global fleet until the end of 2023 or 2024 in the short-term leaving companies fighting for container space.
Another bottleneck in the supply chain is UK port congestion with vessels often being unable to birth so divert to Rotterdam further delaying the arrival of urgently needed goods.
Price pressures include the plummeting value of sterling, and shortage of raw materials, for example, aluminium increased 54% in 2021 and 17% in the first quarter of this year. Also, the war in Ukraine has led to a huge rise in energy costs around the Globe.
Overheating PV Market
This has led to a cost-of-living crisis, which you would think would lead to a downturn in demand. Instead, the PV market is overheating. Driven by rising electricity bills customers are seeking shrewd investments to keep energy costs low. Top of the list is PV it’s good for the wallet and the planet and so a frenzy in demand has energised the PV market.
Genesis will have increased volume by 300% in 2022 are is pretty much hitting maximum current capacity, with a view towards expansion we have moved offices.
This boom comes with huge challenges in the weeks and months ahead impacting stock and cost control. I have kept price increases to an absolute minimum the aim as always is to provide exceptional quality and service at a ridiculously good value.