Generator Lead Times in Post-Lockdown Supply Chain
Race to Meet Demand
During the course of the pandemic, generator lead times have increased significantly. And current production times are getting even longer due to supply chain issues caused by a sudden high global demand for raw materials. Rising costs and production delays have become a major challenge for generator manufacturers.
Early on in the pandemic, lock-downs and worker shortages caused manufacturing plants to slow pace, if not shut down entirely. While factories cut back on production, producers of raw materials were also forced to slow or idle their operations. Now that production for industrial-commercial equipment has increased, so too has the demand for the raw materials needed to make that equipment. And with supplies running low, this has caused an inflation in pricing and delays in deliveries. As CNN business notes, "companies that idled factories or put workers on furlough during lockdowns are now unable to secure enough raw materials to build the houses, make the cars or assemble the appliances that are suddenly in high demand."
Demand in the generator market has remained strong throughout the pandemic and looks to continue to grow, per P&S Intelligence, "The U.S. diesel genset market is expected to witness a compound annual growth rate of 7.2% between 2020 and 2030." Now that manufacturers are moving back towards full production they are dealing with a back log of orders, an increase in costs, and delayed delivery of raw materials. This has caused generator lead times, and cost, to increase significantly.
In these challenging times, the value that Global Power Supply can bring to your company is more important than ever. We have in-stock generators and UPS systems at pre-inflation prices. And we are aggressively sourcing new and used inventory to meet your future needs.
To support your business, we offer:
• Generator and UPS Sales
• Generator and UPS Rentals
• Flexible Financing and Leasing Options
• Significant Savings with Used and Surplus Equipment
• Full Turn-Key Project Management Services
• Nationwide Support for Multi-Location Applications
• Critical Power Equipment; Load Banks, Transfer Switches, and More
For more information or a complimentary power consultation, please contact us today.