Covid-19 and related problems have created logistical challenges for suppliers for almost three years. Chemical manufacturing was not spared from the unprecedented market unrest. The chemical industry was, in fact, hit harder than most sectors. Complications that were initially brought on by Covid-19 have been aggravated by multiple hurricanes in the gulf, a rare freeze hitting Houston, a war in Europe, and inflation. These challenges impact the global supply chain negatively, most commonly delaying the manufacturing and transport of goods. While the complications piled on top of one another, global demand for both raw materials and finished goods remained strong, making it impossible for the industry to ever gain footing. It was a perfect storm. I lost sleep!
Green Mountain International experienced the challenges mentioned above. Throughout the period, ownership and staff have done everything in their power to make the delays as minimal as possible. We stayed in closer contact than ever with customers to anticipate large orders. We kept raw materials in bulk for rapid blending rather than making particular products and needing others. GMI bought everything the rations on raw materials allowed, because we knew the orders would come eventually (and thankfully, they did!). The key was to move away from just-in-time ordering and everyone planning ahead a little more intentionally. GMI and its customers adjusted and weathered the storm.
Currently, the supply chain for raw materials appears to be stabilizing. Also, the never-ending price increases have slowed and, in some cases, reversed. That’s the good news. The most troubling problem is trucking. Costs have doubled and in some cases tripled. Trucks don’t show up as scheduled. When they do, they don’t always deliver as promised. When the material leaves our hands, we are essentially powerless. However, we do everything we can to ensure on-time delivery for customer. We recommend that all contractors build in a week grace period for materials to deliver, particularly to remote job sites. Manage owners’ expectations. Plan to store material properly, particularly in winter weather. If there are any out-of-the-ordinary restrictions, communicate them early and often.
Hopefully, as the market continues to recover from the various setbacks, trucking will continue to normalize. The market never adjusts overnight. Thankfully, it appears to be headed in the right direction. As always, please call us as soon as you have an order on the horizon so we can work it into our production schedule and begin lining up a reliable carrier.
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