Manufacturers cannot bear the increased energy costs alone

High energy prices and scarce raw materials are currently causing great anxiety for many companies. Nölken Hygiene Products believes that politics also has a duty to find solutions.

Horrend energy costs with no end in sight – this is currently the bitter reality for numerous companies. The situation at Nölken, a manufacturer of cosmetic care products and hygiene items, has also become more severe. However, the company remains confident for now that there will be no product shortages. Instead, a shift in supply favoring private-label brands is being observed.

Joint exchange with suppliers and customers necessary

„Naturally, we too face various challenges at our Windhagen site,“ begins Markus Nölken, one of five members of the executive board. „Especially concerning the increased energy costs, it cannot be denied that we are struggling. Furthermore, in the current debate surrounding the energy crisis, we must not forget that staffing shortages and cases of illness related to Covid-19 are further complicating production.“

In particular, suppliers are currently compensating for high energy costs through higher prices. Thomas Schnitter, who is responsible for sales on the management side as well as other areas, knows that the situation is also difficult for them: „We have always strived to maintain a partnership with our suppliers and customers. Therefore, we are in constant communication to find solutions together.“

As a medium-sized company, Nölken, like many other businesses, does not have the capacity to absorb increased costs elsewhere. „Currently, our solvency secures continued production. However, we too will soon have to discuss new prices with our customers, as we cannot sustain the costs in our low-margin business on our own in the long run,“ Thomas Schnitter explains further.

Politics is also responsible.

For the two co-managing directors, it's clear: the current development is unsustainable in the long term for medium-sized companies, but also for private consumers. They primarily see politics as responsible for providing problem-solving expertise and-unbureaucratic support.

„The importance of supply chains in a globalized economy must be recognized and taken into account at all levels by political decision-makers so that we do not jeopardize the social prosperity that has been built up over the past decades,“ emphasizes Markus Nölken.

Despite increased costs and the need to save, Nölken remains optimistic about the future. In recent weeks, intensive discussions have taken place internally to develop and implement strategies that will secure the company's success beyond the current times.