As the Italian summer holiday season ends, there is growing concern about the potential impact on the global market. In the midst of a worldwide crisis, Italians have their weeks off work, resulting in an interruption in the production of goods and services. Unfortunately, this could lead to a scarcity of supplies and, consequently, higher prices. Moreover, it is not only an Italian issue but a worldwide one. In this article, we will explore the possibility of a post-holiday crisis, its potential impact on the market, and what to do if you’re planning a renovation.
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The holiday season in Italy, known as “Italian holidays,” is a period of two to three weeks in August when all businesses are closed. This means that there is no possibility of ordering goods, checking availability, or arranging delivery. As customers, we were left with the information that prices might be higher after the holidays. Unfortunately, there is no good news on the horizon.
Is there a possibility of a shortage of supplies? Unfortunately, that is the case. Rumors circulated before the holidays that Italian producers were facing increasing difficulties in obtaining good quality raw materials. Many suppliers from India do not meet standards, and the rest have significantly raised their prices. In the worst-case scenario, we could face a shortage of supplies, and what will be available could be very expensive. To put it bluntly, the prices will be sky-high. Furthermore, this issue does not only affect Italian producers but all manufacturers of finishing materials worldwide. Thus, the notion of not buying Italian products is incorrect. Bad news is also coming from other countries, so this is an international problem.
If you are planning a renovation, don’t postpone it. I know that writing about renovations now may seem like madness. After all, one would think that it is best to put the money under the mattress and wait for better times. Unfortunately, better times are not likely to return anytime soon. Even if the war in Ukraine ends, things will not get better overnight. Unfortunately, it was good before, and it could be much worse now. The belief that you can do it later or next year because something will change is a mistaken assumption. Unfortunately, money loses its purchasing power. For comparison, let me provide some numbers.
In 2021, large-format gres, also known as quartz agglomerate, was sold in Poland for 25 euros per square meter. Today, the same product, produced by the same manufacturer in the same factory and fired in the same kiln, costs 38 euros per square meter. This represents a 52% price increase in just a few months. One crucial aspect to consider is that renovations are done once every few years. The budget allocated for this operation today may not be enough in a few months, and there is nothing worse than giving up and changing the project.
Cersaie is approaching. In a moment, September will arrive, along with the most important trade fair for ceramic tiles, sanitary ceramics, and bathroom equipment. What will this trade show be like? It is said that it will be a good face in a bad situation. Moreover, there is an increasing opinion that annual fairs do not make much sense. A biennial edition would be ideal. This would significantly reduce costs and allow manufacturers to present specific novelties rather than reheating the proverbial meatball. Let’s be honest, after a few hours of visiting Cersaie, we have the feeling that we have seen it all before.
What should we do next? Postponing matters such as apartment renovation can be very painful for our wallets. Inflation is the enemy of savings, and we all know that the situation with the pandemic has impacted the world economy.
The pandemic has caused a lot of uncertainty in the economy, making it difficult for people to make decisions about their finances. However, there are some steps that can be taken to protect your finances and minimize the impact of inflation.
One strategy is to invest in assets that have historically been good hedges against inflation. This can include things like gold, real estate, and stocks in companies that produce essential goods and services. It’s important to remember that investing always carries some level of risk, so it’s crucial to do your research and understand the potential risks and rewards before making any investment decisions.
Another strategy is to focus on reducing your expenses and increasing your income. This can help you to build up your savings and protect your finances against inflation. You may also want to consider creating an emergency fund, which can provide a safety net in case of unexpected expenses or job loss.
Finally, it’s important to stay informed about the economy and financial markets. Keeping up with news and analysis can help you to make more informed decisions about your finances and adjust your strategies as needed.
In summary, while inflation and economic uncertainty can be daunting, there are steps that you can take to protect your finances and minimize the impact. By investing in inflation-hedging assets, reducing expenses and increasing income, creating an emergency fund, and staying informed, you can help to secure your financial future.
It’s important to take into account the potential post-vacation crisis and the supply chain issues that may lead to shortages and higher prices. Waiting for a better time to renovate or make significant purchases may not be the best approach since the value of money can decrease over time. It’s also worth considering attending trade shows like Cersaie to keep up-to-date with the latest trends and innovations in the industry.
Ultimately, being aware of these challenges and making informed decisions can help mitigate the impact of these issues on your personal and professional life. By staying proactive, you can navigate these uncertain times with confidence and ensure that you are prepared for any potential disruptions in the market.
