Conjuncture.  “Managing fuel price fluctuations is an increasingly difficult balancing act!”

Conjuncture. “Managing fuel price fluctuations is an increasingly difficult balancing act!”

Samir Bennis
CEO of Trarem

The price of a liter of gasoline has just climbed to around 18 DH, when that of diesel has risen to around 16 DH. What are the repercussions of the increase in fuel prices on your activities? How are you managing this crisis, combined with that of raw materials, in terms of your margins and cost and selling prices?
The global rise in fuel prices is undeniably having a major impact on our costs, at two levels. First on the cost of importing raw materials and components. Indeed, the cost of a container imported from China has gone from €4,000 to €18,000, ie more than 4 times the historical price.

Then, on the cost of distributing our orders, which are delivered throughout the Kingdom, and which is bearing the brunt of these increases. Managing these fluctuations is an increasingly difficult balancing act because, on the one hand, we have a moral obligation towards our client partners to whom we are bound by framework contracts that we cannot permanently rectify, and, on the other hand, we are on structuring projects for which purchasing decisions are slow (calls for tenders, factory projects, bank headquarters, etc.) while our price offers have option periods of more shorter (currently from one week to 10 days). These elements, coupled with volatility in raw material prices, have a significant impact on our margins.

In the current context marked by inflation and the decline in household purchasing power, how are order books changing? And how are your different outlets reacting?
Overall, the recovery is on track. Regarding our orders, we are on an upward trend compared to 2021, thanks to various levers, a better targeted sales organization in high-potential “Business Units”, an industrial upgrade that allows us a better productivity (Quality and time) and therefore greater agility on very competitive projects and finally a loyalty of our strategic customers by the quality of our products and the proximity of our “business developers”.

In the current context, what are the main challenges of the furniture manufacturing sector and the prospects?
The main challenge for any industry these days is relocating the entire production chain, but also massive investment in R&D for better competitiveness and a move upmarket in solutions. For our industry, design, with its approach and its tools, is an opportunity to significantly and sustainably increase the company’s performance. Moroccan brands and industries must therefore adopt design and industrial design in a concrete and long-term way. The Made in Morocco that will be exported will inexorably go through design!

Modeste Kouamé / ECO Inspirations

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