“Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time”, well so much for over time. The recent decision to impose large tariffs on our unscrupulous trade partners has created a sort of hyperinflation on steel pricing, which will affect pricing in almost every industry.
Talent Air over the past few week have been inundated with price increases on just about every product we deal with, as much as 25%! In a market that is still feeling the effect of deflation from the prior recession how are we to deal with this enormous increase especially on contracted work ready to start, our answer is better process and controls.
Although we will see the need to increase our pricing for future work we must make the best for what we are already contracted for. Talent Air has reached out to our vendors in and effort to employ processes that will incorporate pre-
manufactured products made off site with lower labor cost thus reducing our labor cost and the time required to install. You might say, “this nothing new in any industry especially construction”, but what we are proposing is immense! I do not want to get into too much detail because it is proprietary to Talent Air and we are investing a lot of time and money to finalize our plan. What I can say is we are working diligently to offset the effect of the current situation.
Be aware, it’s real, it will affect your business and it is here to stay!