Volume 15, Issue 1: 2021 Year In Review
Western United 2021 Year in Review
2021 will go down as one of the most challenging yet rewarding years in Western United’s history. Unprecedented demand from our membership was tempered by worldwide logistics issues, material shortages and most recently, the resurgence of inflation. Western United and our membership fared far better than many of our counterparts across the country as we undertook a program to dramatically increase our inventory beginning in early 2020, while curtailing the sale of critical material to non-members. Material shortages and dramatically increased lead times are projected to continue throughout 2022 and into 2023. The entire staff of Western United is committed to serving our membership, identifying alternative solutions and limiting the exposure to these supply issues as much as possible.
Greg Modini
Chief Executive Officer
Western United Electric Supply
Employee Spotlight
Meet Jamall Guillory
Jamall joined Western United Electric Supply Corporation in January of 2021 as Western United’s Warehouse Operations Specialist and Safety Director. Jamall quickly made changes and process improvements to help the company pass its inaugural RESAP inspection in September. Jamall has also taken on implementing the Wireless Warehouse Management System at our Brighton warehouse, which will increase user efficiency by introducing handheld scanners integrating our existing P21 system. Jamall brings with him an extensive background in warehousing and logistics having spent nine years in the Marine Corps, including two tours in Iraq. After Jamall finished his active duty career, he worked as an ex-pat contractor in Afghanistan for three years. Jamall enjoys spending time with his son Jaden, coaching and playing football and basketball during his free time.
Energy Storage
A global leader in artificial intelligence (AI)-driven clean energy storage systems
Stem delivers and operates smart battery storage solutions that maximize renewable energy generation and helps build a cleaner, more resilient grid. Our customers include Fortune 500 energy users, project developers, installers, utilities, and independent power producers.
Stem's market-leading Athena ™ software users advanced artificial intelligence and machine learning to automatically switch between battery power, onsite generation and grid power. Athena ™ helps lower energy costs, stabilize the grid, reduce carbon emissions, and solve renewable intermittency across the world's largest network of distributed energy systems.
Market Update
Price increases and material instability
Over the past 12 months we have been faced with unprecedented supply chain issues causing disruptions throughout every facet of our industry. COVID related staffing issues paired with strong material demand has continued to exacerbate material lead times resulting in pricing volatility and inflation. Below we have highlighted key commodity increases realized over the course of the past two years (current pricing vs 2020 average; taking into consideration contract premiums.)
Steel (CRU index)
Hot rolled steel up 200% vs 2020 average
Steel Bar is up 115% vs 2020 average
Steel Plate is up 191% vs 2020 average
Non-Ferrous Metals (LME index)
Aluminum is up 62% vs 2020 average
Copper is up 55% vs 2020 average
Zinc is up 42% vs 2020 average •
Resins (plastics news)
HDPE is up 147% vs 2020 average
Copolymer High Impact PP is up 114% vs 2020 average
Styrene is up 88% vs 2020 average
Silicone is up 396% vs 2020 average (Platts index)
Magnesium is up 200% vs 2020 average (Platts index)
Lumber is up 66% vs 2020 average (BLS index)
Freight (CASS & BLS)
Ocean freight is up 500% vs 2020 average
Air freight (China to US) is up 1100% vs 2020 average
Domestic Freight is up 34% vs 2020 average
While these drastic price increases are a tough reality facing our industry, WUE is confident we will be able to weather the storm until this inflationary period passes. WUE currently has an inventory of over $40M (largest in our companies’ history) in addition to a very strong pipeline of materials on order. Given the environment of ever changing lead times, we ask that all customers continue to provide material and project forecasts to your account managers to help mitigate long lead times.
