Increases in the prices of raw materials, as well as road and sea transport, forebode a much more expensive autumn than we expected. All because of the pandemic, the limitations resulting from health restrictions, and random situations. For example, the blockade of containers in the Suez Canal created a threat of a 1% reduction in global trade! To visualize this number, it is worth mentioning that 50 ships pass through this channel daily, with almost 2.5 million worth of cargo. Delays in the supply chain are very costly for both the contractors and the target consumer.
The same applies to raw materials, such as aluminium and copper. Within 12 months, the prices of aluminium increased by 67%, and copper by 95%. It is worth noting that these metals, apart from rare earth metals, are part of many household appliances and audio/video appliances, so the production of the said devices depends on the prices of raw materials. Therefore, prices are bound to rise up.
Markets and retail chains have already announced price increases due to the increase in the maintenance costs.
The pre-2020 boom may not be repeated this year. However, we do not want it to happen again - we prefer repairing than buying new equipment. Thanks to companies such as North, Precio and Green Cell, damaged home equipment can be reactivated. This is also good news for home appliances and electronics services - previously, many repairs were not profitable if the price of new equipment was comparable. So-called disposables will still pose a problem - many elements are glued together and connected with other components, or the replacement of one part results in damage to another, e.g. the housing.
When is it profitable to repair?
The new EU regulations are supposed to enforce greater repairability of equipment - and it's already happening. Replacing batteries in laptops, pumps in washing machines - possibilities are numerous. It is assumed that each repair is profitable at a price not exceeding 10% of the purchase price of the equipment. In fact, the more expensive a laptop, tablet, fridge or dishwasher, the more it pays to repair it.
Some manufacturers guarantee 10 years of spare parts availability from the moment the equipment is manufactured. This means that, in the event of a washing machine, a dishwasher, or a fridge-freezer suffering a failure, there is a good chance that you will be able to replace a damaged glass shelf with a new one. Things get more difficult in case of repairing older equipment (15- or 20-year-old) devices, as spare parts might already be out of production. Sometimes factory replacements come to the rescue. In many cases the same pump, for example, is used in several dishwasher models. Automatic coffee machines use the same "ulka" type pressure pumps. The only difference lies in the rated power. The situation is similar with the Aquastop inlet hoses. They only differ in the length and diameter of the flare nut.
Electronics prices in Poland will also soar. On average, we spend PLN 30 billion on consumer electronics - this is the largest branch on the retail market. Currently, the forecasts predict an increase in prices by 10-12% due to the increases in container transport and materials such as steel and liquid crystal panels. Inflation is not helping, being record high this year - at 5%.
Let's think twice before we decide to scrap any home equipment. The constantly growing costs of maintaining a household encourage people to perform repairs on their own and look for other paths and solutions. Companies such as North, Precio and Green Cell come to the rescue, educating people how to make repairs, what impact it has on the environment, and which tools to use.
The text was created as part of the Green Direction campaign organized by North, Precio and Green Cell. You can read more about the assumptions of the campaign here.
