Companies like Electrolux, Swedish home appliance maker hikes prices as costs for raw materials have risen and that it expects a shortage of electronics components to worsen.
Costs for raw materials, electronic components and logistics are increasing further which will probably have a negative impact of increased raw material costs, tariffs and labor costs.
“The market for electronic components is expected to be somewhat more constrained in the third quarter and, hence, we anticipate challenges to fully meet the market’s product mix requirements,” CEO Jonas Samuelson was quoted as saying in a statement accompanying quarterly results. The impact will be greater in the rest of the year than it was in the first half, he added.
Electrolux, like many other companies have seen their production restricted by a global shortage of semiconductors which are key elements in a range of electronics and appliances.
It’s been reported the electronic components are expected to be more constrained in the third quarter which will further impact supply the rest of the year and into the first half of 2022.
