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Shortage of raw materials: The bestseller is running out at Ikea

2021-09-16T12:03:08.146Z

According to a report, the cult shelf “Billy” is becoming scarce in the branches. The Swedish furniture company has two counter-strategies.



According to a report, the cult shelf “Billy” is becoming scarce in the branches.

The Swedish furniture company has two counter-strategies.

Älmhult - "Billy" is running out.

It's not just students who know what cult shelf we're talking about here.

In 1979 it was added to the Ikea range.

The Swedish furniture company writes on its website that "since 1999 until today" it has sold almost 78 million "Billy" models.

But the

Business Insider

recently discovered that "Billy" is only available "sporadically or not at all" - at least in the branches.

A request from the business magazine at the Ikea press office revealed: Corona is to blame.

The reason: "During the pandemic last year, global sea transport capacities posed challenges to all companies that are dependent on sea transport - including Ikea, of course."

“Billy” shelf less available: Corona also poses challenges for Ikea

Specifically, according to Ikea: Congested ports and “historically high” demand have led to restrictions in 2020.

The lack of material then probably leads to fewer Billys.

According to

BI

2020

, Germany was

initially able to benefit from the shortage of wood.

It exported a record amount of 12.7 million cubic meters of raw wood, writes the portal, citing the Federal Statistical Office.

Especially to China and the USA.

Commodity crisis “Do-It-Yourself” boom in the Corona crisis

The Federal Ministry of Agriculture is responsible for wood.

According to the report, this named several reasons for the particularly high demand, such as a special boom in timber construction and a "Do-It-Yourself" boom in the corona lockdown.

But the report also has good news for Billy fans.

Ikea has announced that it is "prioritizing" the range online and in the furniture stores - and at the same time is buying its own containers or leasing additional ships.

This would have already improved the bottlenecks.

In addition, the "Billy" model is only indirectly affected because it is produced in Sweden.

Material shortages slow down German industry - institutes lower forecasts

The problem does not only affect Ikea, however, and not just wood as a raw material.

Electronic chips, steel, packaging material - the list of missing primary products for industry is long.

Now the lack of material is also reflected in the forecasts of economic researchers.

According to the Ifo Institute, the shortage of materials in German industry has worsened.

More and more companies are passing on their increased purchase prices to their customers.

“The procurement crisis poses a real threat to the upswing,” said the head of the Ifo surveys, Klaus Wohlrabe.

In the institute's monthly economic survey in August, 69 percent of industrial companies reported bottlenecks and problems with preliminary products and raw materials - after 64 percent in July, a high.

Semiconductors and microchips were missing from 91.5 percent of automakers and suppliers and 84 percent of electrical equipment manufacturers.

86 percent of furniture manufacturers complained about the market situation for wood.

(frs with material from dpa)

Source: merkur

All news articles on 2021-09-16

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