How COVID Has Affected The Towel Industry Part Two
Posted by Megan MacBride & Denise Dattilo on Feb 9th 2022
In the spring issue of Northeast Carwasher, our very own Valerie Sweeney wrote an article about how COVID impacted the carwash towel market and increased production turnaround times. Now, in the winter issue, Valerie expands upon the strain facing the global supply chain and how this continues to have major ramifications on the towel industry.
Each facet of the supply chain is experiencing delays: manufacturing, overseas shipping, customs, and local transportation. As a result, entire towel containers that typically take around 45 to 60 days to be delivered, are now taking around four-to-seven-months to arrive.
Vendors are learning from these long lead times and adapting by ordering earlier. The same is recommended for the buyer. Purchasers should be ordering earlier than needed, even if you have still have a good amount of product on hand. This creates a safe buffer zone for your supplies to arrive before your inventory is critically low. This is especially true if you need a very specific color towel for your wash. Now more than ever it is advantageous to be flexible and consider using several colors until the supply chain goes back to normal.
Other than overseas shipping delays, costs have risen sharply too. The main driver behind rising costs is the cost of freight. The price to ship a container overseas has risen immensely. Couple that with an increase in the price of cotton and microfiber, rising labor costs, and increased material costs for items like corrugated boxes and this all contributes to the rise in towel pricing.
It appears we'll be working through container shortages and increased pricing well into 2022. Remember to be pro-active and order early in anticipation of potential delays. Also, know that towel price increases are inevitable and directly correlated to current costs and the economy.
Want to learn more about how COVID-19 has affected the towel industry? Simply download the full “Effects of COVID on the Towel Industry" article below.
Click to Read the Full Article
Also, if you missed part one, here's a link to download "COVID's Effects on the Towel Industry" below.
Click to Read the First Article.
Have questions about our carwash towels? Give us a call at 800-225-9473, or email us at customerservice@ercwipe.com and one of our wiping specialists will be happy to help! How COVID Has Affected The Towel Industry Part Two
Each facet of the supply chain is experiencing delays: manufacturing, overseas shipping, customs, and local transportation. As a result, entire towel containers that typically take around 45 to 60 days to be delivered, are now taking around four-to-seven-months to arrive.
Vendors are learning from these long lead times and adapting by ordering earlier. The same is recommended for the buyer. Purchasers should be ordering earlier than needed, even if you have still have a good amount of product on hand. This creates a safe buffer zone for your supplies to arrive before your inventory is critically low. This is especially true if you need a very specific color towel for your wash. Now more than ever it is advantageous to be flexible and consider using several colors until the supply chain goes back to normal.
Other than overseas shipping delays, costs have risen sharply too. The main driver behind rising costs is the cost of freight. The price to ship a container overseas has risen immensely. Couple that with an increase in the price of cotton and microfiber, rising labor costs, and increased material costs for items like corrugated boxes and this all contributes to the rise in towel pricing.
It appears we'll be working through container shortages and increased pricing well into 2022. Remember to be pro-active and order early in anticipation of potential delays. Also, know that towel price increases are inevitable and directly correlated to current costs and the economy.
Want to learn more about how COVID-19 has affected the towel industry? Simply download the full “Effects of COVID on the Towel Industry" article below.
Click to Read the Full Article
Also, if you missed part one, here's a link to download "COVID's Effects on the Towel Industry" below.
Click to Read the First Article.
Have questions about our carwash towels? Give us a call at 800-225-9473, or email us at customerservice@ercwipe.com and one of our wiping specialists will be happy to help!