Dear <<First Name>>,
Welcome to the latest 4PLAS newsletter, this month we would like to talk about Global trends on pricing and shipping costs which has lead to an unprecedented drive towards reshoring
As you are no doubt aware, there has been a massive increase in material prices over the last 18 months combined with expanded lead times and in many cases limitations in availability. These issues have been Global and additional pressures from container shortages and exceptional rises in shipping charges as well as fuel increases have had a dramatic effect on lead-times and general freight costs.
This relentless pressure has lead many to relook at their supply chains and over the last year we have seen a marked increase within the UK of customers and OEMs bringing manufacturing work back from the Far East .
With the extended lead times, shipping costs and overall fragility of Far Eastern supply chains customers are finding it safer and more cost effective to produce in the UK. Also driving this reshoring is cashflow as the cost of finance changes from pre-shipment payment, stock on the seas and large buffer stock requirements to credit terms, quick turn around and reduce stockholding. As interest rates increase this can only accelerate even more reshoring.
4PLAS have been working closely with many customers to successfully repatriate products and if you are being asked to look into reshoring we have a lot of experience and can offer the following assistance:
- Identifying and offering material equivalents
- Looking for cost down material substitutions
- Internationally recognised material approvals
- Market leading laboratory facilities
- Fast turn around for sampling and colour matching
- Sensible lead times for compounding
- UK stockholding for engineering plastics
- Competitive pricing
- Technicical support for our experienced team.