While prices continued to stabilize for most electrical equipment segments in the third quarter, switchgear and switchboards continued to suffer from volatility.
IRVINE, CALIFORNIA, USA, November 10, 2022 /EINPresswire.com/ — Although power prices remain stubbornly high, price indices for many key power segments stabilized in the third quarter, with price changes hovering below 1% for the entire of the quarter. Despite this, some key segments failed to find similar stability, with switchgear prices seeing price increases of up to 5%.
Based on data from the portfolio of members and their network suppliers, Raivena leading developer of digital purchasing and procurement solutions for contractors, owners and maintenance professionals, believes that while further price relief is on the horizon, 2023 could see a increased pricing and availability pressure for several key power supply segments. chain.
TRENDS AND DEVELOPMENTS IN Q3 2022
With a few exceptions, the electricity supply chain in the third quarter can largely be described as a breath of fresh air. The global electricity price index has stabilized after consecutive quarters of increasing volatility; However, despite this, two key segments still suffered significant price increases.
Electrical switchgear has seen continuous price increases since the start of 2022, and the third quarter was no exception, with manufacturing delays and soaring input costs acting as key drivers. Additionally, electrical panels remain in short supply due to a variety of factors, with many posting out-of-stock delivery dates months away.
Q4 2022 EXPECTATIONS AND OUTLOOK
Through analysis of price, inventory and consumer spending trends, Raiven forecasts that price relief and stabilization, through a combination of recessionary monetary policies and fluctuating energy prices, will continue. through the fourth quarter and early 2023.
However, due to the dependence of the electricity market on copper as a raw material, Raiven expects to see a general price increase in the electricity price index of 1 to 3 % in the second and third quarters of 2023. Copper is becoming increasingly scarce and shortages have the potential to put positive pressure on the price of electrical appliances. While this could be more than offset by tight monetary policy, expect widespread price increases as supply dwindles.
Even if power supply prices stabilize in key areas, finding inventory of switchgear, circuit breakers and panels can still be very difficult. For these products, it is important to plan ahead, maintain inventory, and plan projects with sufficient lead time in mind.
For a detailed electrical supply chain analysis and a host of strategies and techniques for navigating the electrical supply chain, read Raiven’s full Q4 2022 Electricity Supply Chain Outlook Report and start capitalizing on the changes to come.
Raiven is a leading procurement, procurement and supply chain management platform enabling contractors and facility managers to digitally transform their procurement process and gain deep discounts on their items most commonly purchased. Raiven’s cloud-based sourcing platform helps businesses buy smarter and more efficiently with patent-pending AI algorithms that find in-stock products at the lowest prices. Learn more about Raiven at www.raiven.com and on LinkedIn or Facebook.