BEAMA has issued a statement regarding the shortage of finished (steel) cable management products, which it expects to continue into 2021. The shortage is reported to be due to global demand outstripping supply, rather than solely a consequence of the Brexit transition.
Leading UK manufacturing companies of steel cable management are currently experiencing severe production capacity restraints caused by deteriorating availability of supplies of the types of steel used in cable management products, from their stockholders who source the raw material globally from the steel producers. This is also resulting in increasing steel costs in the supply chain.
The lack of raw material, which is a widespread global issue, was initially caused by a dramatic worldwide reduction in the production of steel at mills around the world, during the early part of 2020.
This was caused by the effects of the coronavirus pandemic. Since the middle of this year demand for the type of steel used in cable management products, together with many other applications, has greatly increased across the world as businesses attempt to recover from the disruption to meet increasing general demand and to complete unfinished projects.
The result is that demand is far outstripping supply to an unprecedented degree and this is forecast to continue well into 2021. This shortage of supply of essential raw materials, from all sources, will have an inevitable effect on availability of finished products and the market for these construction products.
While manufacturers are acutely aware of the many other external pressures on our construction industry partners, it is considered essential to provide this update to help enable project planning by individual operators.