The 2017 Cream chargers supply shortage (Drought)
Many customers, and customers of customers are left asking what has happened during the month of march 2017 regarding the supply of Mosa cream chargers and other brands produced by the mosa factory such as: Best whip, Hendi etc and why have prices gone up and supply is almost none existent/ Extremely limited?
Its down to several factors including the pound is weak against the dollar which makes a huge difference in product cost, Take a look at the graph below. And the new Taiwan labor law.
(Source: GBP TO USD)
Most countries outside of the UK trade in the USD as its considered a stable currency compared to many other foreign currencies used in there own country(s).
As we can see by the graph in 2008 The GBP to USD was £1 to $2.09 - Today's current price (29/03/2017) price from GBP to USD is £1 to $1.20
meaning an order of $20,000 USD would have cost £9,569 GBP in 2008 but due to the value of the pound against the dollar that exact same order now costs £16,666 which in return causes a higher price within the UK but the product still costs the same to purchase.
Taiwan labor law.
"Taiwan has for decades upheld a notoriously high-pressure work culture, where long hours and unpaid overtime were common. But now, with a strong economy, unemployment under 4 percent, and the ratio of job openings to job seekers at 1.72-to-1, Taiwanese employers are facing growing demand for more work-life balance among their employees"
In Taiwan (Where most brands of cream chargers are made) for centuries it has been normal to work 80+ hours per week, every week without over time pay, breaks, or holidays and low pay wages.
Until the recent Taiwan labor law put in place in 2017
What does this mean for us?
Workers are working less hours for more money as previously they worked day and night around the clock non stop, production was constant.
Since the new law come into place labour cost has increased and production time has decreased which lowers supply whilst the world wide demand still continues to grow.
It pretty much goes without saying why costs have gone up and supply has decreased.
"Supply & Demand" Simple example:
commodity. free market. demand supply
In this case, Supply costs more to produce which increases price, Availability of stock decreases as not as many are being produced, Whilst demand is ever growing.
= Higher prices.
For more information or to discuss this post feel free to Contact us!
For wholesale cream chargers, And smaller quantities feel free to check out our online store. for pallets and higher quantities please contact us.
We will match any genuine UK quote.
All pallets are sent Next working day, Delivery cost is included FREE within the price.