Airport Sweeping Costs Rise as Fuel Prices Inflate

Airport SweepingWith every increase in petroleum pricing, the cost of shipping and manufacturing rises. This produces a direct impact on consumables, as well as product supply and demand. When shifts occur with raw materials, whether it is a result of availability or pricing, the product obtainability is further heightened.

As a result, there is an influx of price increases in many areas, such as manufactured goods.
In an unpredictable market, changes can occur swiftly and unexpectedly. This pattern is being seen across today’s marketplace and in instances of raw materials rising there is a trickledown influence on cost inflation, price increases, and rising surcharges. When any of these factors are affected, consumers could see above-average pricing from their broom suppliers. In today’s economic climate especially, everyone should stay informed of these irregular factors.

Airport sweeping relies heavily on consumables such as sweepers, brooms and brushes, all of which directly coincide with petroleum prices that intensify as a result of raw material, manufacturing and shipping upturns. Shifting fuel prices are large factors within the sweeping industry, and many times it’s the effects that rising petroleum has on other items within the sweeping business that poses difficulties. For instance, runway rotary brooms and engineered brush products are aggravated by rising fuel prices. Unfortunately, airport sweeping will continue to see the effects of cost increases until raw materials level out.

These price increases are due to the significant escalations that have prompted higher expenditures for both raw steel and polypropylene. Many suppliers have seen up to 15 percent increases and some suppliers have growing concerns over sporadic product shortages, especially for poly brushes, as a result of non-availability. Others fear consumer’s negative reactions to resulting price increases. In either instance, there is a weighty outcome on the airport sweeping industry as a whole.

Another initiator of rising fuel prices is adverse weather patterns. Some might be surprised to learn that destructive weather can yield availability issues, in turn, upping overall cost. An example of this was seen after Hurricane Katrina and Rita hit, resulting in scarce availability of both polypropylene and resin. While most airport sweeping contractors are displeased when cost structures increase, the majority would admit to having greater concern over shortages of raw material, should this challenge ascend.

If a ration of supply occurs, there are no guarantees for any industry. In order to maintain a level business, suppliers and industry leaders are wise to stay abreast of any upcoming changes and cost increases. As brush prices to end-users rise, the cost of goods, services and products will also climb. In order for suppliers to preserve profit they are obligated to pass along added costs to their customers, otherwise they will face profit loss and jeopardize their ability to survive. By keeping pricing increases top of mind, suppliers can more aptly manage account relationships, as well as maintain accountability with their customers.

Consumers want to believe that irregular increases will be brief. Another expectation is that the majority of large businesses will do their best and work hard to hold the bottom line of pricing. It is also assumed that the majority of mature businesses do not want above-average price hikes, but even at a minimal increase, contractors and suppliers will need to accept added expenditures if their provider is going to maintain revenue. One way to execute increases during shifting times is to regularly distribute industry news, pricing changes, and account adjustments to clients.

Now more than ever, the current climate beckons the importance of open lines of communication between sweeping contractors and their customers, as both parties will be accountable to maintain open lines of communication, therefore detracting unexpected disruptions. Those who are aware of rising prices are most likely to understand any additional surcharges on their account. It is always helpful when businesses send price increase notices out to customers. While some adhere to this, other will inform buyers with a surcharge line on their invoice. The best way to avoid a hefty surcharge is to request notices from your provider, asking them to send an explanation prior to any cost increases being implemented to a bill.

Another useful suggestion is to avoid long-standing contracts with suppliers. This is crucial when service agreements surpass a year’s time. More often than not, lengthy contracts do not take price increases into consideration. It is important to request contract pricing clauses, as well as factor in the cost increases to both fuel and matters of living.

There is also the option to purchase your product supplies from another business when prices go up. But, generally speaking, if your provider is being affected, then the majority is. When shopping around for a new supplier it is helpful to inquire about escalation clauses, and whether or not increased business costs will be covered on the supplier’s end. The bottom line is that the majority of businesses today are on a fixed budget when it comes to purchasing product stock, namely consumables which require
a level of understanding for both distributor and contractor.

In addition to staying informed of pricing and demand changes, another key recommendation for rising above the current state of the brush industry is to stock up. Every airport should maintain a strong supply of brushes. Maintaining an overflow of brooms and brushes will act as a barrier if a shortage should arise, while also giving the buyer the option of repurchasing inventory during more economical times.

Planning ahead is crucial to avoiding the fallout of pricing shifts. Some companies are openly advising the use of any capital for the management of inventories. Today, we can expect that petroleum-based costs are uncertain. In times like these, we need to anticipate pricing increases, supply and demand issues during shortages, as well as the impact that weather can have on these factors.

In order to keep a business away from suffering any of these pitfalls, remember to be proactive. Maintain open communication and if possible, plan to purchase brooms, brushes and other essentials ahead of time. This will keep you one step ahead of the rest, allowing you ample room to stretch your inventory of any petroleum-based consumables. For now, the industry as a whole will have to tread water until prices drop.

Story by Erica Rutan

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