E.A. Sween Company continues to see rising costs for logistics, labor and raw materials. As a result, new pricing for our products goes into effect on Sunday, October 3, 2021. We will continue to provide excellent quality and service despite the explosive increase in demand for safe, pre-packaged, ready-to-eat sandwiches. We value the relationships with our customers and appreciate your business.
Increased Labor Costs
There are many factors behind the labor shortage in the United States affecting all businesses big and small. From health concerns related to COVID-19, early retirement and the desire for more flexibility to improve work-life balance; to the rising cost of child care and decades of stagnant wages, it is very hard to get and keep production employees. Manufacturing plants across all industries are struggling to hire enough employees to keep up with demand. This increased demand drives higher wages and overtime. E.A. Sween has done the following to hire and retain employees:
- New 4-Day/10-hour shift schedule in the plant - allows for overtime on Fridays
- Added an additional 3-day/12-hour shift on weekends
- Increased pay to $18 per hour
- Added referral bonuses for current employees
- Offered stay bonuses for new employees
Increased Freight and Logistics Costs
Consumer demand is at an all-time high and there aren’t enough transport vehicles to meet the high load demands. The freight industry is also not immune to labor shortages. Freight and logistics companies need to offer higher wages to attract truck drivers, dockworkers and station workers; expenses that are passed down and increase freight costs. Manufacturers and suppliers have no choice but to pay the increased cost to ensure customers receive products on time.
Material Costs are Increasing
Finally, increased labor and freight costs have a direct impact on the cost of raw materials needed to produce our products. While raw materials are no stranger to price increases, the compound impact of all factors leads to rising prices for consumers.
We value the relationships with our customers and appreciate your business. We’ve included links to relevant articles in each area. Click on each link to read more.
If you have any questions, please contact our Sales Support Team at 1-800-328-8184.
Resources:
Expect Higher Prices for Consumer Products
As Inflation Rages Food and Beverage Manufacturers Pass Higher Costs on to Consumers
April Freight Trends Jump 2021 to be Extraordinarily Strong Year
What Does A Worker Want? What The Labor Shortage Really Tells Us
Is there a labor shortage? What the May jobs report tells us
Why the Worker Shortages in Manufacturing?
