Effective 1st January 2023, Flint Group will implement a global price increase in order to respond to continued inflationary pressures across multiple cost drivers.
Following an extended period of volatility and cost escalation during the global coronavirus pandemic, the company said it is clear that everyone is now witnessing a fundamental shift in global economic conditions. Markets around the world are grappling with extreme inflationary pressures and the disruption of global supply chains.
Flint Group has continued to endure extraordinary cost increases in raw materials, packaging and freight which are now being exacerbated by additional inflationary pressures across a variety of other overheads – labour costs in particular.
Steve Dryden, CEO, Flint Group, comments, “At Flint Group, we are used to successfully meeting macro-economic challenges, but we are now entering a new environment of relentless cost inflation of a magnitude not witnessed in decades. Our primary purpose is to make sure our valued customers are supplied with the high quality products and services they expect from Flint Group. To achieve this, we must recover inflationary cost increases by building inventories of raw materials, sourcing alternate raw materials and investing in our workforce; we are continuing to underwrite the security of supply.”
The company says it will implement a general price increase to recover inflationary costs, primarily related to labour. Raw material, packaging, freight and energy cost increases from the company’s supply base will be recovered via existing price adjustment mechanisms. Increases in Flint Group’s energy costs will be captured through an energy surcharge mechanism which will be adjusted in line with market developments – a procedure already in place within some business units.