Alicia Parris Senior Project Accountant Identity
Find out how this affects you , and what to watch out for
1 . General inflation
Each year inflation rises which affects the cost for products and services . This occurs when prices rise due to increases in production costs , such as raw materials and wages .
2 . Energy
Demand for oil and gas has risen worldwide , pushing up the price of energy . This has a knock-on effect on businesses that must run machinery , heat offices , and pay for transporting goods . Those increased costs will often be passed on as higher prices hidden within inflated costs .
3 . Materials
There are shortages , delays , and bottlenecks in some materials ( timber , steel , cement , aggregates , plastics , paints , and electrical components ) due to increased demand , Brexit , and other external factors . When suppliers fail to meet demand , that pushes up prices .
4 . Suppliers and labour
We have seen some suppliers shut down over the pandemic . There is also currently a skilled labour shortage . A considerable part of our workforce has either returned to Europe or left the events industry . This has a knock-on effect on demand within the industry .
5 . Transporting of goods
We are now required to pay more now for transporting goods outside of the UK , with additional fees for carnets and duties . Customs changes lead to longer turnaround times , which in turn can lead to slightly higher client costs . The more time freight has to spend on the road , rails , or sea , the higher the cost to keep it moving .
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