The prices of many commodities and raw materials have steadily increased over the past months, and unfortunately, the asphalt industry is one the hardest hit. We're being hammered by price increases in raw materials used in asphalt equipment and supply manufacturing, including plastic, natural rubber, steel, and paint.
There are several reasons why the prices of goods, including asphalt maintenance supplies and equipment, remain high these days.
We are not out of the woods yet with regards to the pandemic. The surges caused by the more ferocious delta strain have made raw materials harder to obtain and have wreaked havoc on shipping and the global supply chain.
For example, paint manufacturers have been having problems obtaining titanium dioxide (a chemical compound imported from China) in the past months. When they arrive on our shores, a few manufacturers manage to snap them up before others even have a chance to reach them. With fewer raw materials available, many manufacturers are forced to hike the prices of goods.
But it’s not all bad news. The supply of some raw materials sometimes stabilizes, and enough raw materials manage to arrive on our shores. The problem, however, is compounded because logistics companies often have trouble finding drivers to transport them across the country.
Despite the pandemic, quarantine restrictions in the United States have been eased. Life is back to normal in many states and businesses—including asphalt maintenance—are booming again. These results in higher demand for consumer goods and construction supplies, leaving some areas scrambling for them.
Asphalt Kingdom is one of the millions of companies in the country experiencing this acute shortage of raw materials and its cascading effect on prices. In the past months, shipping a container of goods from overseas cost around $5,000. Now, local importers have to spend around $28,000 to ship a container of goods from overseas.
In another example, a bulk order via a shipping truck was initially quoted at $1,800. The price, however, was raised to $2,300 in a matter of three days.
According to economic experts, US inflation woes are expected to continue for years. Because of this, asphalt maintenance contractors should expect to pay more for supplies and equipment in the future.
Now for a bit of good news.
Because prices are not expected to stabilize any time soon, we encourage you to invest in much-needed supplies and equipment sooner rather than later.
Crack fillers and sealants can be purchased in bulk while they are still affordable and can be stored in your warehouse while you wait for spring. Keep in mind that asphalt sealer has to be protected against freezing, while rubberized crack filler is okay to freeze.
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The same goes with sealcoating and crack repair equipment, such as crack filling machines, sealcoat sprayers, and more.
Bank and small business loans brokered by the government are always an option for those who are on a tight budget right now. You can also explore loans from private lenders.
If traditional loans are out of the question, then check out ClickLease, a Utah-based equipment financing institution that specializes in providing affordable and accessible funding for contractors. Asphalt Kingdom has partnered with ClickLease to fill the gap in funds or to provide a little breathing room for contractors in need.
With ClickLease, you do not need to shell out money for supplies and equipment outright. Simply go to the page of your chosen equipment or supply here at Asphalt Kingdom, click on ClickLease, and start the application process. See the sample image below.