Storage system manufacturers suffer from steel shortage

Storage system manufacturers suffer from steel shortage

Short-time working, working from home and infection control: the pandemic is having a major impact on all areas of the European economy. The production of storage systems has also been affected by the infection control measures against the SARS-CoV-2 virus. Manufacturers are running out of steel in the second wave.

"In contrast to the first lockdown, the individual companies have made arrangements for delivery, transportation and assembly. They are aware of the infection prevention measures and rules. The challenges facing the industry today are material procurement and price increases," says Edwin Müller-Rauschenbach, Sales Manager at storage and shelving system manufacturer ELVEDI. This situation was already becoming apparent around Christmas, but the situation has worsened considerably since the turn of the year. According to the Sheet Metal Forming Industry Association, there is an imbalance between the supply of steel and the demand for steel. In addition, there are import restrictions on steel from third countries. "The EU steel supply is growing more slowly than demand. Many companies are having difficulties securing their supply. Offers are being withdrawn in some cases and supply contracts are being canceled. In addition, Europe does not have enough active blast furnaces to cover demand itself. Some were even shut down before the crisis due to a lack of profitability. Now the furnaces need a lead time of three to four months before the first rolling," continues Edwin Müller-Rauschenbach.

The expert for storage and shelving systems at ELVEDI advises transparent cooperation when expanding or re-equipping a company's own warehouse. "The key to project security in the coming months is close communication between suppliers, manufacturers and customers. Many companies will increase their own storage capacities in order to be able to serve the market in the future in addition to existing orders. At ELVEDI, we won't be running out of storage systems to meet our customers' needs any time soon - we made provisions for this at an early stage," summarizes Edwin Müller-Rauschenbach.

  • Issue: Januar
  • Year: 2020
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