OUR PRICE INCREASE EXPLAINED

Hello, I’m Garry, Managing Director of Conquip Engineering Group

If you’ve received this video, you are a valued customer of Conquip and I want to start by saying thank you for your continued business.

If you’re watching this video – it’s likely you already know we are increasing prices. I wanted to take the time to explain why and give you some tangible ways that we can support you in these challenging times. You might also learn some things about Conquip that you never knew before.

During the last 2-3 years, we have experienced consistent increases in costs across several raw materials categories, resulting in structured and infrequent price increases.

Today’s world is different. Markets are being affected in ways that we haven’t seen for generations.

In our production we have experienced sharp cost-price increases in the last 3 weeks, in all areas of our supply chain - steel, fuel, energy, and labour. We know this is not ‘news’ to you, or to the market.

If we look at steel, our main commodity and revenue source, the primary reason for the price increase is simply - supply vs demand.

So, what’s different today compared to the last 2 years?

 Most European countries are heavily reliant on iron ore and steel from Ukraine and Russia. These supply channels have essentially ceased due to the conflict in Ukraine, putting pressure on the Western European and UK steel supply chain. The result – an unprecedented decrease in supply, vs an exceptional increase in demand, causing unpredicted steel price increases.

What does this mean for you?

 We will continue to be a sustainable partner in your supply chain. As a manufacturer, supplying quality, compliant products built in the UK from high-quality steel, we are taking a two-step approach:

01 Firstly, we will be introducing a price increase, effective from today, 23 March 2022 to pass on the increases that we are experiencing.

02 Secondly, we will continue to source sustainably, by forecasting our usage and forward buying direct from the steel mills in the UK. This means we can consistently fulfil your orders.

I’ve recently visited major projects and spoken with people from across the industry and I know we are not the only ones with challenges. We’ve seen the impact of the skills and labour shortages, lack of availability on materials, spiralling project costs. Costs which you couldn’t forecast when you tendered for the project.

Which is why we are here to support you:

• We have kept our pricing for purchase as fair as possible and we will always look at volume-based pricing. It’s worth considering government schemes as well, such as the super deduction tax that continues to run until March 2023

• If you are trying to protect your cash flow, hire is a great option. 95% of our product line is available to hire and with simple invoicing, a damage waiver and no cleaning charges, it’s never made more sense.

• If you are looking to purchase but you don’t have the funds, it’s worth considering our on-site and workshop services for equipment that you purchased in the past.

  • Our engineers can carry out on-site servicing and inspections to maintain your equipment and increase it’s lifetime. There is an environmentally sustainable advantage here too – speak to your account manager for more detail.

  • Our workshop team will use all our manufacturing expertise to repair and refurbish equipment, so it is functionally “as good as new”

  • Not only is this going to save you buying new equipment, it’s going to massively reduce the likelihood of a health and safety incident on site.

We enjoy close collaboration with our customers, through networking sessions, project meetings and factory visits. Our team would welcome the opportunity to discuss what challenges and constraints you are facing in your business, so we can creatively overcome them by working together.

Thank you for taking the time to watch this video, we look forward to continuing our strong partnership into the future.