For the past 70 years, we at Laval Underground Surveys have taken immense pride in our ability to lead the borehole camera industry by releasing new, innovative products that provide a high level of value and reliability. As I mentioned last year, we have been honored to stand with our customers over the last 12 months as we jointly navigated the new reality that has been the COVID-19 pandemic.
As we begin to look towards a post-pandemic economy, we are presented with the stark reality that the global supply chain is facing an unprecedented level of demand and material shortages. Many of the core components that we depend on to build our products such as steel, silica glass, and advanced electronic components, have been steadily increasing in price over the last several years. While we have continuously absorbed these annual price increases, the COVID-19 pandemic has acted as an accelerant, causing raw material costs to rise to unprecedented levels.
For the first time in over a decade, we are being forced to analyze the impacts of a price increase that would likely take place at the beginning of the third quarter of this year.
In addition to increased costs and raw material shortages, the rise in demand for our borehole inspection systems is likely to cause an increase in our current lead times. Currently, we are projecting a 35-40 day lead time to produce a system. We are projecting that these lead times are likely to increase as we approach the late summer and early fall.
With these variables in mind, I would implore you to reach out to any customers who have been deliberating purchasing a Laval Underground Surveys system and encourage them to place their orders within the next 60 days. Not only can we attempt to maintain the current lead times, but any order placed with the next 60 days will not incur an increase to our current pricing.
You are all valued industry partners, and as such, I will be communicating regularly with you in regards to the proposed price increases as the end of this quarter draws near. I want to thank you for your understanding and continued support.
If you have any questions regarding this price increase or our portfolio of products, please do not hesitate to contact us at email@example.com or (559) 251-1396.
President, Laval Underground Surveys