Flint Group has revealed that it will implement a global price increase in order to respond to continued inflationary pressures across multiple cost drivers as of 1 January 2023.
“Following an extended period of volatility and cost escalation during the global coronavirus pandemic, it is clear that we are 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,” the company said in a statement.
Flint Group said it 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.
Flint Group CEO Steve Dryden said, “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 also said despite the continual implementation of an extensive range of efficiency programs, the magnitude of the cost increases means the company is reluctantly compelled to raise prices.
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.
The company most recently placed a surcharge on all Commercial Publication Web Division products from March 1, saying that raw material availability and rising energy prices have hit the business.
“Flint Group will continue to prioritise product quality, service and the security of supply to all its valued customers. Your local sales representative will be in contact soon to discuss the effect of these adjustments,” it said.
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