Swiss manufacturer Bobst has reflected on global economic challenges and announced new procurement decisions to ensure customers have access to new equipment, spare parts, and consumables in the post-Covid reality.
According to Euler Hermes, the post-Covid global GDP is expected to rebound by 5.1 percent in 2021. This growth drives high demand for raw materials across various industries. In addition, bottlenecks in the global supply chain remain as high as during the peak of the pandemic.
In these circumstances, raw materials for the packaging industry and some key materials required for the production and maintenance of equipment, including standard components across electronics, electrical, bearings, and consumables, are in short supply generating longer lead times and price increases.
‘So far, we have been able to maximize our production capabilities reflecting the orders we received. We managed our parts inventories to avoid shortages. The new stock replenishments are, however, for the foreseeable future, going to be made at much higher costs,’ said the company in a statement. ‘We need to ensure business continuity and consider these new and unexpected market fluctuations. As of July 1, 2021, a price increase of two percent on machines and related peripherals will be rolled out across all countries. Spare parts and services are excluded from this general increase.’
‘Given the current circumstances and the market volatility, when a crisis turns into such a recovery, we must toggle between managing for the present and the future. We are planning for the long term with new forecasting and planning methodologies, but at the same time, we need to cope with immediate global market constraints,’ commented Jean-Pascal Bobst, CEO of Bobst Group.