Keep calm, carry on…

Consumers are in for a bumpy ride this year, as fuel, food and energy prices – which were already on the up before the war in Ukraine – continue to rise.

According to Martin Lewis, financial journalist and founder of moneysavingexpert.com, fuel and energy prices are causing ‘absolute panic’ and he was ‘virtually out of tools’ to help people.

So, should the industry be panicking? For companies that are dependent on high energy use, the continuing surcharges will be very sobering. According to Cornwall Glass, the energy surcharge on one lorry load of glass from one manufacturer increased from £350 to £6,500 – in the space of one week.

Cornwall is a large, well organised organisation that has systems in place to manage surcharge increases – but even so, it has no choice but to pass these costs on.

Rob McGlennon, MD of Deceuninck UK, predicts ‘headwinds on the horizon’ and that we should recognise and be prepared for the impact of oil and gas prices. Opportunities are still going to be there, adds Rob, but differentiation in product and service are going to be vital in order to win business.

For CDW System’s group chairman, Jeremy Phillips, record house prices and economic uncertainty are actually good news for the industry. He predicts that home improvements will remain ‘centre stage’ as homeowners decide to improve not move.

The key point to remember here, of course, is that some households are better off than others. While many will be watching their spending very closely, others will have accrued significant savings over the course of the pandemic and as such it is those servicing the premium, aspirational end of the market that should have the most confidence going forward.