Ensuring our customers can get the products they need is important to Webb Supply. Since the global pandemic hit in 2020, sourcing products has been a long game. With suppliers pushing long lead times and continuous cost increases, the supply chain is being stretched. Webb Supply wants to help our customers navigate the longer lead times and maintain customer satisfaction.
Due to the complex nature of Commercial equipment, these units are designated as make-to-order. Since the pandemic stressed the manufacturing process, customer lead times are about 12 months out. What does this mean for your jobs? When quoting commercial HVAC, it’s important to take the amount of time it’ll take to get the product into your decision-making.
Commercial Units – 12 months
Shortages in microchips have caused supply chain disruptions across many industries in the world, and HVAC is feeling the strain. Production lead times for residential equipment are currently sitting at 16-20 weeks (4 to 5 months). While the shorter lead time makes procurement easier, the production capacity for these units is subject to microchip availability.
Residential Equipment – 16 to 20 weeks (4 to 5 months)
Inventory levels on general materials such as ductwork, boots, line sets, and other raw materials finally save supply chain management balance out in 2022. While there is still a bit of lead time, the average time frame to get these materials in-house is 2-4 weeks. While 2-4 weeks may seem like nothing to contractors and dealers, that can be an eternity while your job waits for the customer’s order. Here’s how Webb Supply Can help.
General Materials – 2-4 weeks
How Webb Supply Can Help
Thanks to excellent forecasting, Webb Supply can cut down manufacturing lead times ensuring the replenishment of products as they get ordered. By purchasing a bulk quantity of units ahead of time, we can meet customer demand and in return manage lead time reduction. Our in-house experts can help tailor a base unit to the exact specifications your customer expects so you can circumvent the high demand and complete more jobs to close out the year.
It’s no surprise that with inflation still going strong, the production costs for industry-standard materials and equipment are rising. Since the pandemic, costs have risen year over year and sometimes month over month. Through conversations with multiple suppliers, Webb Supply can confirm that there will be a price increase in Q1 of 2023. The question is how much? While many manufacturers are reporting preliminary numbers, it is expected that the HVAC industry could see a substantial cost increase as the new regulatory changes are enforced.
Playing the long game, Webb Supply customers would stand to benefit from stocking up on equipment ahead of these cost increases to manage customer expectations. As more information on the price increases becomes available, Webb Supply will make sure that our customers remain well-informed on these changes. Stay tuned for further updates!