Why are Prices and Shipping Times Increasing?
November 9, 2021
It’s no secret that the state of our world right now is plain weird. Empty shelves at the grocery stores and long wait times on your packages to be shipped are just two annoying circumstances that have come to be seen as normal in 2021. While most of us have come to accept it and work our lives around it, it sucks. But more importantly, it’s slowing down a TON OF BADASS TRUCK BUILDS. So, why is this happening and what’s the story behind the crazy price increases, shipping delays, and lack of inventory on your favorite truck parts?!
- Why are There Shortages?
- Why are Prices Increasing?
- Why are Shipping Times So Long?
- What Does This Mean?
Why are there Shortages?
It’s probably no surprise at all that the culprit of the shortages we’re all experiencing is COVID-19. Mandated worldwide lockdowns halted commercial production. Unfortunately, even when businesses and manufacturers opened back up, things did NOT just go back to normal. The lockdowns started a ripple effect that affected every point in the supply chain. A lot of companies are struggling to keep their inventory stocked right now. Fortunately, we have over $20 million of inventory in our warehouses, ready to be shipped! There are tons of available in-stock wheels, tires, suspension, and more that qualify for expedited shipping. Meaning, they could be at your door in as little as 7 days.
China is a huge producer of raw materials that are necessary to make all your favorite truck parts, including steel and aluminum. When China shut down at the beginning of 2020, the entire supply chain took an absolutely HUGE hit. Now, these shortages are plaguing us even a year later. The simple answer is to just “catch up” and “work faster to make up for lost time.” Sadly, there are obstacles preventing that too: prices and shipping.
Why are Prices Increasing?
With there being an increase in demand for raw materials, prices are skyrocketing to secure them. Manufacturers are having to shell out sometimes 40-60% more money to get their hands on what they need to make their products. On the flip side, now THEY have to increase their prices in order to make enough profit to keep their doors open. So if you’ve been wondering why the hell prices are increasing, it’s not just a brand being greedy and wanting more money.
This isn’t realistic for all companies, so unfortunately a lot of businesses have had to close down because they couldn’t keep up with the hyper-inflation, also contributing to the shortage issues. Throughout 2021 we’ve seen some small price increases on popular wheel brands, mostly in 10-15% increments. We wish this was the end of the increases, but in all reality, prices will shoot up in 2022. With that being said, the prices you see now on your favorite truck parts are as low as they’re ever going to be.
Why are Shipping Times So Long?
So, let’s say you DO get your hands on what you want at the price you want. But, it’s taking what seems like FOREVER to arrive. What’s the deal with that? Well, it doesn’t help that the demand for products is at an all-time high.
Plus, earlier in the year, the Suez Canal, a crucial waterway for shipping lanes, was blocked for six days. This created a huge ripple effect and delayed freight ships, which led to late shipping containers of product to be delivered here in the States. Big companies including Amazon, Walmart, and Costco purchased nearly all the space available on freight ships coming to the USA to avoid delays affecting their business. Now, smaller companies don’t have any sense of security on whether they get guaranteed commitment from the shipping companies.
So while your order was able to be placed, there’s no guarantee that it can get shipped at any specific time since all the space was bought up. This is why you might get a message saying your order delivery date is being pushed back another 4-6 weeks from the original estimated delivery date. It sucks, but it’s the new reality, unfortunately.
What Does This Mean?
Due to material prices increasing, lack of transportation, and global production shutdowns, the impact we’ve seen on the supply chain is pretty severe. So basically, we don’t see things clearing up or going back to normal, at least not anytime soon.
Because of everything going on, prices for wheels, tires, suspension, performance parts, and accessories have been rising and will continue to rise as businesses start to feel the heat of the situation more severely. So putting off your truck build may cost you more down the road than it would be to buy your parts now. Also, plan ahead and be prepared to wait longer for them to be delivered than you normally would’ve. If you see a set of wheels you REALLY want and they have long wait times, don’t let that steer you away from getting them. The wait time isn’t going to magically be cut down weeks later, so you might as well buy them and secure your place in line. Get what you want, your build deserves that.
If it brings any comfort, we’re all in this together. Everyone’s having to deal with the consequences of COVID-19’s effect on the supply chain. The best advice we can offer is to PLAN AHEAD and be PATIENT. Your truck parts will come, and if you want them at a decent price, BUY NOW before it’s too late. If you don’t have money saved up to get everything you need for your build, look into available financing options. When you do get your order and are able to build your dream truck, make sure to add it to our online fitment gallery for enthusiasts across the world to see!