Shipping delays and shortages prompt furniture brands to increase prices

Major furniture and homeware brands have made the decision to raise their prices to cope with increased costs due to issues with international shipping and shortages of key materials.

Household names including Ikea, Axor and Piet Hein Eek say some of their costs have more than doubled, forcing them to pass some of this expense on to their customers. A spokesman for Piet Hein Eek, a Dutch furniture brand known for its sustainability and use of repurposed materials, said its prices would be increased by eight per cent at the start of 2022.

The spokesman said: “Due to the worldwide shortage and price increases of raw materials, in combination with the excessive rise in international transport costs, we are forced to raise our prices.”

During December, the luxury bathroom brands Axor and Hansgrohe announced prices would be increasing by five per cent from January. And Ikea has warned its customers its prices are likely to go up in 2022.

The furniture industry has been badly hit by issues with the global supply chain, which have been largely blamed on labour shortages and customs issues caused by Brexit and the Covid-19 pandemic. Problems with getting hold of the raw materials necessary for production, delivery delays and shortages of HGV drivers, skilled labour, commercial storage and transportation have led to increased costs for furniture and homeware brands.

Cost of materials has risen exponentially

Other companies which have indicated they will increase prices in early 2022 include the British furniture brand Boss Design and fitted kitchen company Hølte.

Hølte’s director Fiona Ginnett told Dezeen that the brand had seen the cost of its materials rise exponentially during 2021.

She added: “To date we have absorbed the cost increases either in part or in full. However, in January we will see yet more increases, including 13 per cent on the price of all laminates, so we will unfortunately be forced to increase our prices for the first time.”

Supply chain issues are expected to continue during 2022, meaning demand for companies like AP+ which provide third party logistics (3PL) services will remain high. AP+ works with brands in the homeware and furniture industry, providing much-needed warehouse space for stock and order fulfilment.

Our team pick and pack orders on behalf of our clients, making sure they are sent directly to the end customers in a timely and cost-effective way. This is ideal for companies which do not have their own storage and distribution facilities in the UK and want to avoid disruptions and delays in the supply chain.

Find out more about the services AP+ offer by talking to a member of the team today.

Carl Salmon

Carl Salmon

Carl Salmon is the Warehouse Manager at AP+, in charge of day to day operations with a focus on customer satisfaction.

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