PRICE HIKES AND PANDEMICS: THE INCREASING COSTS OF PARTS
Since the start of the COVID-19 pandemic, we have seen unprecedented disruptions across many industries, including the appliance industry. One of the biggest challenges facing appliance companies and consumers alike is the rising cost of repair parts. What are the reasons behind the price increases and what do they mean for appliance repairs?
Supply Chain Disruptions
One of the primary reasons behind the rising cost of repair parts is supply chain disruptions. When countries worldwide closed their economies to reduce the spread of COVID-19, manufacturers had to temporarily stop production. This led to shortages of many essential raw materials and components, causing prices to soar.
Furthermore, the pandemic has greatly affected how things are shipped between countries and how they are organized for delivery. This has led to problems and delays in getting the parts needed for repairs. This has led to increased transportation costs and longer lead times for parts, which can further drive up prices.
Increased Demand for Appliance Repairs
Another factor contributing to the rising cost of repair parts is the increased demand for appliance repairs. Because more people are staying at home during the pandemic, appliances are being used more often. This means they are wearing out faster and breaking down more.
Tariffs and Trade Disputes
Tariffs and trade disputes have also played a role in the rising cost of repair parts. In the past few years, the US has put taxes on lots of things brought from other countries, like steel and aluminum. These are essential materials for many appliances.
In addition, trade disputes between the US and other countries led to retaliatory tariffs. This has led to higher costs for manufacturers and ultimately higher prices for consumers for new appliances and for parts for repairs.
Shipping & Delivery
In addition to the multifaceted challenges brought about by the COVID-19 pandemic, the year 2023 has witnessed a notable escalation in shipping costs. These mounting expenses related to transportation have further exacerbated the predicaments revolving around the availability of repair parts.
The global shipping industry has been grappling with persistent disruptions and bottlenecks, resulting in escalated expenses for transporting parts from manufacturers to repair centers. These delays in delivering essential components to their intended destinations have not only elicited frustration but have also introduced additional financial burdens.
Furthermore, there has been a substantial surge in the demand for shipping services worldwide, as businesses contend with supply chain backlogs and heightened consumer demands. This heightened demand has subsequently driven up shipping costs, presenting an added challenge for repair companies striving to maintain affordable pricing for their clientele.
As an appliance repair company, we’ve noticed repair parts and shipping costs rising. Fixing this isn’t a walk in the park. While some things may change over time, some won’t ever be the same again. What’s crucial is to keep in mind that prices for new appliances and repair parts have gone up, so brace yourself for a bit of a price surprise!
