Dear business partners,
Over the past few years, we have experienced considerable supply disruptions, from COVID to 2021-2022 raw materials shortages waves, with significant commercial and economic impacts. Under this very challenging context, we have been able to manage our business together and in 2023 supply chains have almost normalized. We would like to thank you for your partnership during these years, where Bostik did its utmost efforts to sustain a reliable service and accompany our key customers in this volatile market.
Even though supply chain conditions have improved lately, a few challenges remain in particular because price of raw materials reached a new level and are not expected to decrease materially any time soon. Furthermore, several of the impacts affecting the industry have become permanent such as energy and labor costs. On top of that, some cost segments are continuing to increase for specific reasons:
- Cements and aggregates costs did increase further in 2023 and we expect another hike in 2024 due to costs associated to CO2 emissions mitigation and energy.
- Packaging costs are stable or on the rise (depending on the family), in an industry with limited available capacity.
- Labor costs continue to be very high, with inflation resistant to decrease in Europe, US and Asia. Inflation is expected to be back to the 2% range target of Central Banks only in 2025/26.
- Freight, after a few months of stability, are starting to increase again linked to petrol prices and labor shortage.
- Compliance and regulatory costs which continue to increase year after year.
Over the last few months, Bostik has done great efforts to absorb such raw materials cost increases, holding its pricing conditions while maintaining Bostik renown level of product quality.
However, and despite our best efforts to postpone such decision, we are reviewing our prices upwards to protect our sustainability as your business partner. We are hereby informing you that starting from January 1st, 2024, Bostik Construction & Consumer products prices will increase by approximately 5% depending on the region/country and product family.
We hope prices of raw materials, freight and labor will stabilize in the coming few months as overall inflation subsides, especially in Europe and US. As usual, we will keep you closely appraised of the market evolution.
Please do not hesitate to contact your local Bostik C&C representative, with whom you can go over the new conditions for 2024 and implementation steps.
Thanks for your understanding and continuous partnership with Bostik C&C.
Bostik C&C Global Head/Senior VP