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The Independent Automotive Aftermarket Federation

Rising material and labour costs here to stay, warns BM Catalysts

Date: Monday 31 January 2022

Rising prices of raw materials, as well as labour costs, are here for the long term, as ongoing supply chain issues continue to affect businesses around the world.

BM Catalysts is highlighting the issue to the automotive aftermarket, citing a 20+ percent increase in the price of stainless-steel tube, since the start of 2022 alone.

This, combined with a 100 percent price increase in slit coil used in various components and a 40 percent increase in the price of other materials used in the production of catalysts, DPFs and pipes, means volatility in the market looks set to continue well into the year.

There have also been significant increases in overall labour costs, primarily down to a shortage of skilled workers. These costs are expected to continue rising across the business as the result of national living wage changes in April, and are further exacerbated by significant increases in logistics, packaging and production costs seen in quarter four of 2021.

Mark Blinston, BM Catalysts Commercial Director, said:

“As a leader in the manufacture of catalytic converters and DPFs, we are always analysing the market incredibly closely and we’re continuing to see unpredictability in the costs and supply of a number of essential materials.”
“Furthermore, there is a real shortage of skilled workers, which makes retention and recruitment of direct labour much more challenging, and ultimately it’s lead to significant cost increases in that area of the business. Increasing capacity is a key strategy for us, as we continue to experience growing demand across our range of products and it is clear to see that to do this, labour costs have to increase.
“We will continue to work closely with customers to ensure we can meet the demands of the global market with our industry leading levels of availability.”