Consumers should prepare for higher prices and delays in residential power projects.
IRVINE, CALIFORNIA, UNITED STATES, June 21, 2021 /EINPresswire.com/ – As power supply shortages expand, electrical contractors are paying significantly more for copper wire and face significant challenges in restocking.
Raiven, a leading provider of procurement solutions for contractors and building owners, has reached out to electrical contractors, suppliers and distributors to find out if further price increases are underway:
Mark Cooper, President of H&D Electric, one of the largest electrical contractors in the Sacramento Valley, Calif., Comments, “We have been an electrical contractor for builders of single and multi-family homes since 1958. For the first time in my 30-year career, I had to call all of my home builders to inform them that I had to revise our contract to reflect the rapidly rising prices of copper wire. In the past, I’ve always been able to absorb the price increases, but that’s just not possible when my wiring cost has gone up over 200% [in] Last year”.
Brian Watson, owner of Watson’s Charging Stations & Electric, explains the inflationary pressures experienced: “We have installed thousands of electric vehicle charging stations and for every job we use copper wire. A month ago, yarn prices jumped 30%, and now they are up another 10% in less than two weeks. Inflation puts us in a very difficult situation with our customers because either I am not passing on the higher prices and we are losing money on the job, or I have to inform them that my estimate needs to increase.
What Can Electrical Contractors Do?
Contractors need to quickly find where electrical supplies are in stock and, preferably, at the lowest price. Doing this manually by searching for distributor websites and making numerous phone calls is labor intensive and inefficient.
Chris Davis of Spotlight Solar, a leader in solar and EV charging installations in New Jersey, explains, “Three months ago, I was able to go to my distributors and immediately find Romex.® or THHN in stock. It was more expensive, but at least I could find it. Now I find them out of stock. I resorted to online research but found it to be 2-8 weeks out of stock. It’s long and frustrating because I have clients who want solar installations, home chargers, battery storage and other electrical projects completed immediately.
Brett Knox, CEO of Raiven, describes how advancements in technology can help entrepreneurs save time and money in these situations: “Technology is now available that searches real-time among distributors to find product availability and current prices. Raiven launched his sophisticated algorithm in a browser extension during the pandemic to help contractors and facility managers find COVID essentials. It is now available for a wide variety of electrical, HVAC and building maintenance products. Knox continues, “Distributors have different levels of price sophistication. Some update prices daily while others may be months behind. In fact, Raiven’s algorithm found a major distributor that sells Romex cables and other NM-B cables 40% cheaper than their competition, so contractors are sourcing. Raiven’s algorithms continue to identify pricing anomalies and product availability for high demand and shortage products.
Raiven is a leading purchasing and procurement platform that enables contractors and facility managers to digitally transform their procurement process and earn deep discounts on their day-to-day purchases. Learn more about us on Raiven.com.