Latest Update: March 2026
Dear Valued Werner Customer,
Werner is committed to transparency, partnership, and proactive communication. This letter provides our OEM, end user, and electrical contractor partners with a clear, fact-based overview of the economic and industry forces currently impacting supply chains, product availability, lead times, and pricing across the electrical and industrial markets. Our goal is to help you plan more effectively and collaborate with us on practical solutions.
THE CURRENT SUPPLY CHAIN ENVIRONMENT
Supply chains have not returned to pre-pandemic norms. Manufacturers and distributors are operating in an environment of persistent volatility. Trade policy shifts, geopolitical instability,extreme weather events, and transportation constraints are now structural cost factors rather than temporary disruptions.
Globally distributed sourcing remains vulnerable at multiple points, from raw material extraction to finished-goods delivery. Many manufacturers are operating with leaner inventories, increasing sensitivity to upstream disruptions and translating into longer lead times, reduced flexibility, and the need for earlier project planning.
INFLATIONARY PRESSURES AND INPUT COSTS
While headline inflation has moderated from earlier peaks, manufacturing input costs remain elevated. Several factors continue to drive higher total landed costs:
- Labor: Wage growth, benefit inflation, and skilled workforce shortages continue to pressure costs despite productivity gains.
- Energy & Logistics: Fuel volatility, trucking capacity constraints, and port congestion contribute to variable freight and handling expenses.
- Operational Complexity: Extended transit times and schedule variability increase carrying costs and disrupt production planning.
Even when base commodity prices stabilize, these inputs sustain upward pressure on finished goods pricing throughout the supply chain.
COMMODITY PRICING & MATERIAL AVAILABILITY
Key commodities used in electrical and industrial products — including copper, steel, aluminum, plastics, and semiconductors — remain volatile. Although some prices have eased from historic highs, they remain above long-term averages and subject to sharp swings tied to geopolitical events, trade restrictions, and capacity constraints.
Availability challenges persist for transformers, switchgear, circuit breakers, and high-voltage cable. In some categories, lead times extend well beyond historical norms — conditions that continue to affect infrastructure, utility, commercial, and industrial projects nationwide.
TRADE POLICY & TARIFFS AS STRUCTURAL COSTS
U.S. trade policy has become a standing cost factor rather than a short-term disruption. Tariffs on steel, aluminum, electronics, and industrial components remain in effect, and ongoing policy changes add uncertainty to sourcing and pricing decisions.
For manufacturers and distributors, tariffs increase import costs and administrative complexity. A significant portion of these costs is passed through the supply chain, contributing to price adjustments even during periods of stable demand — independent of local market conditions or project-specific dynamics.
IMPLICATIONS FOR OEMS, END USERS, & CONTRACTORS
- OEMs: Face higher input costs, longer component lead times, and increased forecasting risk — impacting production schedules and quoting accuracy.
- End Users: May encounter project delays or budget adjustments as equipment availability and pricing shift during execution.
- Electrical Contractors: Continue to manage risk in bidding and planning as material costs and delivery timelines remain less predictable.
WERNER'S COMMITMENT TO YOU
Werner remains focused on proactive communication, strategic supplier partnerships, disciplined inventory strategies, and collaborative planning to support your project timelines and cost management goals. We are here to help you navigate these challenges—not simply communicate them.
The electrical and manufacturing industries are operating in a period defined by structural change rather than temporary disruption. Werner appreciates the trust you place in us and remains committed to working alongside you through these challenges.
For questions regarding specific projects, product categories, or pricing, your Werner team is always available to support you.
Thank you for your continued partnership.