Global supply chains are under immense pressure currently due to the disruptions caused by the Covid-19 lockdowns since early 2020 and the subsequent rebound in economic activity. 

This has resulted in production delays, raw material cost increases, sea, and air freight delays, and freight cost pressures. Bearings and power transmissions are fully imported products with near-zero local manufacturing and thus directly impacted by these factors. 

European premium bearing manufacturers, as well as factories in China and Japan, are experiencing production delays and supply constraints resulting in bearing stock shortages that are unfortunately expected to persist for the remainder of 2021. We are additionally starting to experience stock deficits in the local SA market as customers (and competitors) scramble to procure inventory to meet customers’ demands.

Committed to our Customers

We at B2K are committed to keeping our customers informed to manage and mitigate any risks that may adversely impact their operations and businesses. 

B2K has taken all necessary steps to mitigate the anticipated product shortages by sourcing stocks timeously and increasing, where necessary, buffer stocks. Presently sufficient stocks are on hand, in transit, or on order to service most of our usual customer demand.

We subsequently urge our valued customers to plan their critical stock levels and upcoming projects/maintenance as far in advance as possible. As always, we will do everything in our power to plan critical stocks for our customers. It is important to note that the more detailed the information provided by customers, the greater and more accurate the planning solutions thereof. 

Furthermore, with the pressure on supply chains in 2021, we are already experiencing increased costs on imported goods. Fortunately, the exchange rate in 2021 has been in our favour thus far, enabling us to offset the source and freight cost increases. However, the Rand devalued in June and July 2021, and we expect it to devalue further in the upcoming months, which may result in increased market pricing for the remainder of the year. As your trusted bearing supplier, we will endeavour to only apply price increases when absolutely necessary and to ensure that such increases are kept to a bare minimum.

For More Information

Please see the following articles and graphs explaining in more detail the impact on South Africa’s bearing and power transmission industries as well as the risks facing our customers and how to best mitigate them:

• Freight delays and pricing (read more here) – Find out why freight rates are expected to reach record highs this year and remain above their pre-pandemic levels in the long run.
• This graph from FBX highlights the increase in global container freight rates as a result of the pandemic. 

• Production delays & steel price increases – click here to discover how China’s factory activity growth slowed in May 2021 as raw materials costs rose at their fastest pace in over a decade.
• As evidently indicated in this graph below, the steel price increase globally continues to rise, and this will consequently have a significant impact on the costs of bearings and power transmission products.