Unfortunately, we are continuing to experience further significant impacts on the construction industry, so Sustainable® would like to update you with current critical updates and impacts. The majority of our suppliers and subtrades have refined their operational focus and coverage areas for their services due to fuel inputs and current supply as well as technical drain.
Further increasing cost pressures and supply chain disruptions
The continuing Middle East situation has placed considerably more pressure on our industry, energy prices and supply chains, creating further uncertainty. This ever-evolving situation has significantly affected our direct suppliers and subtrades.
All our major suppliers have advised they have significant building material delivery delays and now serious supply chain issues, with the average current delay being 3 weeks, some shorter and some pushed further out. For a simple example, there has been an increase in Aluminium up in some situations of 18% due to 10% of all Australian supply from the Middle East having ceased. There have been three price rises in 8 weeks of many items.
Please note, Sustainable® along with our subtrades and suppliers have all had substantial expenses, all labour costs have increased by about 10% to compensate individuals due to fuel costs. While suppliers are doing their best to try to control these additional costs due to continuing delays, our Team and our supplier’s current positions are being reviewed daily due to these ongoing pressures.
The supply chain has slowed with some stopping in some cases last week. Causing further delays on Bathroom fixtures and fittings, PVC and poly fittings/pipes/window fittings, some glass products as unfortunately they are all imports manufactured overseas. Given this information, our suppliers unfortunately have had to put some supply on hold and are experiencing some early lay off of shift staff.
Therefore, unfortunately, at this stage, at the very least we must ask for your patience as we are under enormous pressure to try and keep things moving for all our contracts, however all productivity has been totally disrupted. As supplier stock supply continues to be delayed and slowed down, this means contract timeframes are tentative and uncertain, both with recent as well as earlier placed pre-orders and deliveries.
We will continue to closely monitor the situation with direct advice from our suppliers and industry membership associations. Should you have any questions regarding the above information, please contact the Head Office on (07) 3201 1177.
With Regards,
Brett McKenzie | CEO Sustainable Pty Ltd
