Maintaining the trajectory for innovation and growth

20 February, 2023

“Fortunately, prices have since levelled off to a large extent, so we can now forecast and estimate costs rising with inflation more accurately. Of course, prices might go up again in the near future, but I don’t think we will have to endure the same type of highly volatile situation that we did during February and March last year.”

Loeffler adds that because of COVID, lead times for delivery of metals and other materials were extended during 2020 and 2021. “Because of this, customers were stocking a lot of products in order for them to be able to supply goods to their end-users within a short timeframe,” he says. “Now, fortunately, the lead times have returned to a more reasonable level, so customers are destocking to a large extent, which is good in terms of our company being able to get back to supplying more regular orders.”

In terms of specific sectors, Loeffler explains that a large part of Jubilee Clips’ customer base was automotive, but this has now changed mainly to the automotive aftermarket. “This is because only high-performance cars tend still to have the requirement for hose clips,” he says. “The rest tend to rely on quick-fit, cheaper materials involving spring clips or glued parts. If, on the other hand, vehicles in the aftermarket need replacement parts, garages understandably want to source standard traditional hose clips. So, that remains a strong sector for us. Also, new technologies related to renewable energy sources are turning into a growing market segment for Jubilee Clips.”

Market share

Neil Anderton, hydraulics & industrial director, Slack & Parr, explains that the company manufactures all its solutions in-house at its Derbyshire factory and, as a result, its supply chain is relatively short. “So, while some materials – for example 316 stainless steel for our corrosion resistant products – have been slightly slower to arrive, we haven’t experienced the negative impact of global geopolitical issues on the way we do business,” he explains. “In fact, in the past 12 months we’ve expanded our share of the UK market because we’ve been able to fulfil orders more quickly than some of our overseas competitors.”

Colin Mander, strategic business line director and Northern Europe compressor lead, Ingersoll Rand, considers there is no question that the current energy crisis has brought the cost and efficiency of compressed air systems into sharp focus for all Ingersoll Rand customers. “At our recent distributor conference, the energy consumption (and the associated cost) of compressed air energy was the most talked about issue and we discussed the numerous ways that compressor sales and services teams can help mitigate for these risks,” he says.

Mander explains that, in particular, Ingersoll Rand continues to support the BCAS 10% Taskforce campaign and is encouraging customers to look at all the cost-efficient and simple ways to reduce their compressed air system energy consumption. “Whether it’s implementing heat recovery systems, investing in variable speed technologies or investing in energy efficient downstream equipment, there are numerous ways to improve energy consumption, often with rapid payback on investment,” he says. “For many years, the industry has used a formula to calculate compressed air cost of ownership, comprising capital investment and installation at 10%, maintenance at approximately 8% and energy costs making up the largest proportion at 82%. Now, with the global rise in electricity prices, the energy costs of compressed air have increased to as much as 91% of the total cost of ownership, meaning that customers need to re-evaluate the way that they assess their compressed air energy costs.