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These Are Challenging Times… But We Are Here to Serve You


YORK, PA – October 19, 2021

Please see the headlines from several articles that I just reviewed on-line:

NYT – “The world’s top central bankers see supply chain problems prolonging inflation”
CNBC – “Lack of workers is further fueling supply chain woes”
Fox News – Evening Edition – “The United States Facing Mounting Supply Chain Issues”
WSJ – “Powell Says Supply-Chain Bottlenecks Could Lead to Somewhat Longer Interval of High Inflation”

This is not new information to anyone reading this letter. We all are painfully aware of the global supply chain issues and the high inflation that is hindering our economic bounce-back from the Corona-virus pandemic. In our personal lives, whether one is shopping for groceries, electronics, durable goods or a new vehicle, the lack of product availability and the increase in price of available products is painfully obvious.

The same holds true for our businesses. RG Group represents numerous premier vendors, such as Parker Hannifin, CPC, FANUC, Gast, and MiR, to name a few. Our vendors are not immune to the inflationary and supply chain pressures noted earlier. As a result, RG Group finds itself in the undesirable position of having to pass on price increases from its key vendors to our customers. We have also seen that the normal cadence of price increases is no longer in place. Instead of the once-a-year price increase, we have had multiple price increases from some of our vendors. In some cases, the price increase that we pass on to our customer are double-digit increases, something many of us have not experienced in recent memory. To add insult to injury, the delivery times on many of the products that we supply have increased by weeks, with delivery dates being moved at or near the time of shipment from the vendor. Despite these supply chain issues; RG Group has worked diligently to achieve a very respectable On-Time Delivery (OTD) rating over 92% for the last 9 months.

We have taken several steps to achieve this – (a) we are working with our vendors to know what their lead-times are when we quote so that we have the most up-to-date information (b) quote validity dates are limited to a maximum of 30 days
(c) our supply chain team regularly expedites orders for our customers to ensure needs are met and (d) we have increased inventory, where possible, on faster moving parts, to support you, our customer partners. In a spirit of cooperation, please think about placing additional blanket orders as a proactive way to mitigate some of the ongoing supply chain issues.

These are challenging times with regards to supply chain and inflation. Some of the pundits say that it is going to be this way well into 2022. Please know that however long it is, RG Group, with its Trusted Expertise, is here as always to serve you one part at a time.

Should you have a specific question regarding an order or want to learn more about how the RG Group is an advocate for our customers, please contact the Leader of our Customer Experience Team, Krystle Krebs, at 717.849.0327.

Thank you and be safe,

Steve Bennis
Chief Executive Officer
RG Group

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