The ongoing crisis has hit the supply of raw materials
This first quarter of 2022 was foreseen as the road to economic recovery, but the Russian invasion in Ukraine came to generate a kind of storm due to its collateral effects: the growing increase in the price of energy and transport stoppages that we still have present in Spain and April is getting closer and closer. In addition, there is runaway inflation that adds to the raw materials crisis still dragging down manufacturing sectors such as the footwear components sector.
In this sense, the return of the world industry to production has created a supply crisis that is still being felt, as there is a lot of demand for raw materials and little supply, which has increased the price of raw materials, freight, containers and transport in general. In addition to the price increase in 2021. There were expectations that prices would fall progressively with normalization, but the war seems to have dashed these forecasts.
Low raw material supply and high demand: exorbitant prices that become unaffordable
The current times are very complicated for the footwear components industry and the shoe industry. The transport stoppage and the rise in fuel prices have now squared the circle of a perfect storm that threatens not to control prices at least until the medium term. What will the near future bring?
