Just a few months ago, we talked about rising prices of materials in the vacuum industry. While cost is a major factor, it doesn’t paint the entire picture.
We aren’t assigned to a singular industry and therefore multiple factors push and pull the vacuum market waves. During the height of the pandemic in 2020, a lot of capital equipment projects were put on hold. Uncertainty, instead of pricing, was the primary impetus. As overall conditions improved, however, pent up demand caught up. Now, we are seeing demand expressing itself in many markets that touch the vacuum industry.
While the sudden influx of economic activity and demand is welcoming, it’s also applying pressure for GNB Corporation and our partners and suppliers to deliver.
The consequences for deficiencies in vacuum products and components are widespread. Take computer chips, for instance. The shortage in computer chips is well documented and is causing headaches across industries. Motor vehicles, for instance, are in short supply, causing the price for used vehicles to go up. And it’s all because companies cannot manufacture computer chips quickly enough.
As you might have guessed, computer chips must be manufactured inside a vacuum setting. A variety of processes within the vacuum chamber help with the creation of computer chips. It doesn’t stop with computer chips, either. Many products, in fact, must be produced within the confines of a vacuum chamber.
So, it’s clear that the capital equipment needed to keep up with computer chip demand, and in other industry, is essential.
Meanwhile, the market for various other vacuum equipment is also a little sluggish. It’s important to note that vacuum applications encompass a variety of industry, as noted above. It’s not just one industry. When we’re talking vacuum technology, we are also talking about food packaging and microchip processing to LED lighting and aerospace.
Here are some other factors at play. Reduced spending in travel and defense is causing a minor lull in the dynamic world of vacuum applications. And of course, other parts most impacted by the COVID-19 pandemic are still in recovery mode. At the same time, research and development and consumer products are absolutely flourishing.
The list continues.
Factors such as steady home price increases, rising costs in labor and transitionary or permanent inflation are also moving the needle on vacuum inflation. Raw material prices are up. Fossil fuels are also moving upward. Transportation is another cost that has gotten more expensive. As a result, overall prices have increased.
This is all to say that we can expect a busy time and higher prices in the vacuum equipment market in 2021 and beyond.
We are excited for what’s ahead as we continue to make strides toward full recovery and industries find their balance. The possibility and potential of the future will soon be unlocked, and we cannot wait to see what’s in store.
As a leader in specialty vacuum products and components, we embrace change and the demands of all markets. Our promise is to deliver vacuum products and components that are leak-proof and operate as designed to meet the diverse needs of our customers, so they say, “WOW!”
We embrace the challenges and demands of being a leader in specialty vacuum products and components. That’s why we ask you to please consider GNB Corporation first for all your vacuum equipment needs. Our world-class vacuum products reflect our expertise and never-ending pursuit of excellence in everything we do, from start to finish.