COVID-19 hit the global glass manufacturing sector hard, not only did Polytronix, Inc. Film & Glass Division have to temporarily halt our production floor operations to comply with government mandated lockdowns, so did our raw material manufactures and glass vendors. The industry saw some recovery in the second half of 2020, due to glass activities being deemed an essential service. The building market has been seeing longer lead times due to supply shortages and how prices have increases drastically for building materials.
Manufacturers in general, increase their prices annually, and others at least every 24 months, these increases are generally for reasons such as inflation, raw material increase or aging workforces, which in turns increases the cost of benefits. According to the Door and Window Market, over the past 27 months, almost every glass manufacturer has raised their prices at least three times. Historically glass manufacturers have had price increases of 5% or less, but during this pandemic, the price increases are closer to 10%. COVID-19 has definably muddied the waters to say the very least.
Smart Glass Pricing Increasing
Polytronix, Inc. Film and Glass Division price adjustment is the result in cost increases in raw material, logistics, energy, and operational expenses during the COVID-19 glass shortage. Polytronix has also offset these added costs with production enhancements. We do expect the glass supply to remain short-to-tight in the upcoming months and will continue to keep our high standards and maximize our glass supply with our glass vendors. The glass shortage has caused longer lead times, pre-COVID-19 our lead time was 6-8 weeks for Polyvision® Smart Glass, now we’re experiencing 10-16 week leads times.
The glass market predicted to continue growing both nationally and globally, however, it is unknown how the fluctuating prices of raw materials due to COVID-19 may inhibit future growth on a worldwide scale.
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