Three Questions

Q. We have heard a lot about supply chain disruptions and issues with transporting goods worldwide this year.

Have these issues affected Salice, and if so, how are you dealing with them? If not, how have you successfully avoided these issues?.

We have been impacted by disruptions since the early stages of the pandemic. Looking at our contacts in Europe and talking to our vendors we knew we were going to be affected by this for some time. We proceeded to avoid the West Coast ports, choosing instead multiple ports of entry on the East Coast, moving freight by train or truck depending on the urgency. These ports of entry are reviewed constantly and, if congestion is found, are avoided for a certain period of time.

We are, in a few words, hedging our bets by covering risk. When possible, we have been manufacturing more than what we needed to create a buffer in case of lengthy delays at port or things of that nature. Our parent company was quick to respond to the “new normal” and moved swiftly in the market to procure the raw materials needed, paying a premium for them when scarcity dictated supply and demand movements. Q. With the rapidly changing construction markets these days, have you noticed a shift in what your customers expect?

Have you seen a shift in your customers themselves?

Customers have been negatively impacted by all these problems from day one. I think they are tired of being told vendors are out of this and that, they want valid alternatives, and they want them quickly. If before we could get away with certain delays, now it is virtually impossible unless [one is] willing to jeopardize the business. A lot of people chose to exit the workforce, so we are dealing with a lot of new faces and the new challenges they ask us to help with.

Q. What trends and new developments do you predict for the industry going into 2023?

More of the same unfortunately, as the supply chain slowly gets back to normal. A due correction in the market may help to normalize the situation. I see many customers caring more about the quality of the products they buy and the craftmanship, possibly because they spend more time looking at it while smart working or homeschooling. We are predicting the industry will grow more accustomed to versatility and less loyal to a particular brand because of all the availability issues. s p

Matteo Fregosi is the Chief Executive Officer for Salice North America, and has been with the company since 1995. He helped to grow the company from a small operation in Italy to an industry leader. Salice North America is headquartered in Charlotte, North Carolina.