Furthermore, 73% of firms had experienced some form of increased lead time and 58% had major sustainability issues, where material, which was previously available, is no longer easy to source. The survey also unearthed a number of personal experiences, with companies discussing tales of '25% price increases to come', 'customers not accepting that increases in raw material cost will have an impact on the cost of goods delivered' and even cases of 'losing business to Eastern Europe, India and China'.

"The results of the survey reinforce exactly what the industry has been saying for months, " explained Rob Lott, Project Manager at Accelerate. "China's insatiable appetite for steel has had a major knock-on effect to the domestic market and given the producers the necessary leverage to push prices through the roof."

He continued: "The problem automotive suppliers have is that they are faced with the dilemma of absorbing the costs internally or pushing them on to the customer and losing the business that way."

Accelerate is now urging West Midlands companies to adopt a strategic long-term approach for coping with steel price pressures based on the benefits of working together and being more innovative with purchasing and recycling methods. At the top of the list is a scheme to encourage companies to collaboratively sell their scrap back to producers, thus increasing selling power and improving returns.

www.accelerate-programme.co.uk