Status information on price development and the supply situation at Elektror airsystems

In these tense times, marked by war, inflation, Corona, material shortages and the threat of an energy crisis, we would like to give a brief status report on the situation at Elektror and an outlook for the rest of 2022 and the coming year 2023.

General situation

Like most companies, we are struggling with the partly massive influences caused by the circumstances mentioned above. Despite the sustainable implementation of our "dual source" strategy, the doubling of our inventory and the consistent securing of delivery quotas with our upstream suppliers, extremely painful postponements or underdeliveries can occur. As a result, we are not always able to keep our delivery promises to you on time. We would like to expressly apologise to you for this. We assure you that we reduce these effects to a minimum by working in three shifts and on Saturdays, and that we process intermittent deliveries of materials immediately.

Price development

Currently, we are once again in negotiations with our suppliers and have to note that material prices continue to rise sharply. The price increases in the energy sector will also hit us hard at the end of the year, especially for energy-intensive preliminary products such as aluminium castings, copper, electronic components, and of course for energy itself in the form of electricity and gas. In addition, we are eagerly awaiting the results of the ongoing collective bargaining in autumn. All these circumstances force us to react to these developments already today and to make a forecast of future price developments that is as realistic as possible.

Due to an above-average order intake and the extended delivery times, our production capacities for 2022 are already coming to an end. We confirm current customer orders for mid-October. According to our capacity planning, we will be able to accept orders with delivery dates in 2022 until the end of August at the latest.
We have decided to deliver orders that we can still deliver in 2022 at the existing conditions. Our offer and price commitment period ends on 31.08.2022. In return, we are forced to significantly increase our prices from the delivery date 01.01.2023.

As soon as we can make a reliable estimate, we will contact you to find a solution in partnership. We will already enter your orders with a desired delivery date after 01.01.2023 in the ERP system in order to trigger the requirements and to plan the required material. You will receive your order confirmation after we have carried out the reliable estimate.

General delivery situation

We would like to inform you that Elektror will continue to be able to produce our fans and side channel blowers in the usual way, even if the 3rd gas warning stage is declared by the Federal Government. In this case, we only see the issue of "painting" as critical, as we are dependent on gas for the drying process of our 2K high-solid paint. Should this occur in the next few days, we will contact you separately with a proposal. We have addressed any related problems with our suppliers, but ultimately they are beyond our control.

We very much regret that we have to bother you again with the vexed subject of prices, but we are convinced that transparent and early communication is imperative in such an extreme situation and hope for your fundamental understanding.

We, the entire Elektror team, promise to make every effort to continuously improve our general delivery performance again and to keep the foreseeable and unavoidable inflationary effects for you as low as possible.