I wanted to give you an update regarding 2021 pricing. We are seeing increases for a variety of reasons from our suppliers both in chemical and packaging industries. Covid related labor shortages, compliance, higher insurance costs, locally mandated wage increases, increases in inbound and outbound freight are some of the major contributing factors and are experiencing approximately 5-10% price increases in these areas.
The global cleaning market is currently experiencing major supply disruptions brought on by the Covid-19 pandemic. In North America, cleaner ingredients have a high demand, with many chemicals available on an allocation basis only. As a result, we are experiencing increased prices on our chemicals, as demand collides with capacity reductions and logistics infrastructure are also strained by the pandemic. Raw material suppliers are limiting orders to contracted minimums in many cases, deciding who gets product and who does not, often extending lead-times by weeks. To combat the supply issues, we are forced to find other suppliers, who often have supply, but at a higher price.
Furthermore, supply and pricing issues will likely carry on throughout most of Q1, until idled manufacturing capacity is brought back on-line. These issues will impact the price and availability of not just the commodity itself. As always, we strive to build the most powerful cleaners in the industry and we will not sacrifice efficacy for cost.
Thank you for your patience while we work through the price changes. As always, I will work with you where I can in regards to pricing. Our production lead-times may also see a small increase as we work through the challenges that lie ahead of us. Please check our website for current pricing.
We appreciate your continued business and look forward to a much better 2021.