If you regularly work with electrical components, you may have noticed that the price of these components has been steadily going up. Parts like panelboards and switches have increased dramatically in cost – and are projected to increase in price by 10 to 15% by the end of Q2.
Why are electrical components becoming so expensive? There are a few different reasons – many of which can be boiled down to recent events such as the Covid-19 pandemic and the Ukraine conflict. They have has a knock-on effect on the manufacture and delivery of components.
Firstly, access to materials required for components has become harder. For example, aluminium production has been greatly reduced due to many factories in Ukraine (a big aluminium exporter) suspending production. Manufacturers have been paying more for materials and therefore charging more when selling parts that use aluminium such as switches.
Various factors including the pandemic have also led to a labor shortage in factories and shipping services. There are not enough people to manufacture and transport the parts that are being demanded, which has led to slower manufacture and slower delivery times. Local suppliers of components are therefore paying more to get components delivered to them faster.
The rising cost of electrical components is something worth budgeting for if you’re an electrical contractor or someone else who regularly works with electrical components. Even regular homeowners can expect to pay more for electrical repairs and installations as a result. To understand the shortage better, check out this amazing infographic below provided by Raiven.