How Is The War In Ukraine Impacting The Supply And Cost of Industrial Spark Plugs?

The ongoing tragedy in Ukraine has had a ripple effect on many industries across the world. With Ukraine being a significant producer of raw materials and parts, the supply chain has been significantly impacted.

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One industry that has been severely impacted by the war in Ukraine is the spark plug and industrial engine sector – due largely to supply chain issues around the availability and cost of precious metals and other components.

In this article, we will examine how the war in Ukraine is impacting the supply and cost of spark plugs globally.

The Impact On Global Chipmaking

Among other things, the Ukraine war has had a severe impact on the world's neon production, which is critical for lasers used in chipmaking. Ukrainian companies such as Ingas and Cryoin, which account for about half the world's neon production, have largely shut down their operations due to the war.

The closure of these companies has disrupted the global supply chain and impacted the production of chips used in various devices. Additionally, supplies from Russia are also currently restricted due to ongoing sanctions by various countries, including the UK and the EU. Additionally, Russia produces about a third of the global palladium supply, a rare metal used in sensor chips and certain types of computer memory, which has further impacted chipmaking.

The Impact On The Automotive Industry

The automotive industry has also faced significant disruptions in the supply chain due to the war in Ukraine. Ukraine has a big car-parts industry that has been severely affected by the war. Wiring harnesses, a critical component in automotive electrical systems, have especially been impacted. The shortage of wiring harnesses has caused delays in the production of cars, ultimately impacting the supply and prices of components such as spark plugs in both the automotive sector and beyond, for spark plugs used in industrial gas-powered engines.

Rising Costs Of Raw Materials

The war in Ukraine has resulted in a shortage of several raw materials, including wheat, corn, fertiliser, plastics, and metals, especially palladium and platinum. Additionally, oil and gas prices have skyrocketed across the globe due to high dependence on imports from Russia, which supplies 40% of Europe's gas, with a consequent impact on supply chain costs and energy expenses. The UK's current cost of living crisis is a direct result of this. These rising costs of raw materials and gas have contributed to an increase in the prices of spark plugs around the world.

Disruption To The Supply Chain

Disruption arising from the conflict has caused a backlog of orders and shortages of stock as products that were originally sourced from Ukraine or Russia are no longer available. Spark plug and component producers have had to search for alternative sources of raw materials, leading to further supply chain disruptions and delays, and severely impacting consumer prices.

Spark Plugs From RM Walsh – On Your Side

RM Walsh are unfortunately not immune from the supply chain issues affecting our industry. Scarcity of materials, high wholesale prices, and duty increases have all forced us to review our pricing strategy and increase prices on a wide range of products.

This being said, we are 100% committed to sustaining the most cost-effective prices for all our products and will never increase prices unnecessarily. Purchasing your spark plugs through RM Walsh is still the most cost-effective option, as our products are carefully selected for the best reliability and output, giving you more performance for your money than cheaper models.

To find out more about current stock availability and prices, please contact us today.

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