Thank you for your support in 2018, and patience with the price rises that
you have seen. Regrettably the large price rises on raw material trends are
continuing into 2019 as the chemical shortages and growing global
demand for Silicone continue.
This is affecting all Silicone compounders, and manufacturers like us, we
are all faced with price rises on raw material of up to 40% in 2019 so far. We
use the best value quality European compounded Silicone available which
is purchased in high volumes for the best rates. Like for like comparisons
are more expensive.
What does this mean to you?
For starters the raw material cost is only one element of every job, and the other elements are
relatively stable. We are not going to just apply a flat increase to all jobs in 2019 but look at
each job on a case by case basis. Those that use high amounts or raw material which has
seen a high price rise will see the highest rises. Those that use very little raw material (small
profiles and most mouldings) will see the least, if any at all.
We do not wish to cause you disruption or risk losing your valuable custom, but we have to
react commercially to such a raw material movement, this is affecting the whole industry.
What can you do to mitigate the rises you are faced with?
There are a number of things that you can do. Ordering a higher volume will reduce the cost
per metre for extrusions, and once in stock you have protection against any future pricing
changes. If you are having a specialist Silicone grade and can switch to a general purpose
one that will help, and if you have a solid profile and can have a hole up the centre of it that
will also help.
Shortages of Silicone compounds in 2019?
Until the main compounders can increase production output this is a risk. We are already
trialling compounds that look to be a compatible match for the ones we currently buy and
where we know supply is not a risk. Pricing is like for like, and because this will come from
outside Europe and Brexit disruption is also mitigated. This will be offered as an option for you
should the need arise.
And don’t forget as an existing customer you will be prioritised over new work we are offered.
Our loyal existing customers are our first priority, and always will be.
OTHER NEWS
1. AS 9100 Rev D Renewal
In September we passed our Surveillance Audit for this quality standard, which is a level
above, but inclusive of ISO9001. Your quality department will likely need the latest copy of our
certificate which can be downloaded from the quality section of our Website.
We are seeing much more stringent flow down of T&C’s from customers to Suppliers, with this
standard you can be confident we should meet even the most onerous of requirements that come your way.
2. Winter Shut down dates.
Please note that Adpol will be closed from Midday 21st December until 8am 2nd January
2019. Production slots tend to get pretty booked up in the week up to Christmas, so please
check your stock and order early to be sure we can help you in time.
