May 3, 2021
Dear Valued Customer,
As I noted in my letter dated February 26, 2021, due to the extreme weather event experienced throughout the southern and southwestern United States in mid-February, Southwire received force majeure notifications from a number of its non-metal raw material providers.
To be clear, we have not declared force majeure, and are not declaring force majeure at this time.
We remain in contact with our non-metal raw material suppliers and are working to prioritize pending orders and work in process as our suppliers work to return production to normal levels. We continue to take steps to mitigate any potential impact to Southwire and our customers, including continuing to investigate alternative sources of supply and assess our safety stock of inventory.
As for metals, our vertical integration in copper and aluminum rod enhances our supply position.
Like many industries we are also experiencing increased transportation costs related to capacity constraints in the carrier market, including driver availability. Based on our strong relationships with our carriers, we are confident that we will continue to be able to serve our customers, however freight costs are expected to remain elevated until driver availability increases.
We will continue to monitor the situation, including how quickly our suppliers are able to resume normal operations and shipping of materials.
As our valued customer, we are committed to keeping you informed as this situation develops. If you have any questions, please reach out to your Southwire Sales Representative.
Thank you for your business and continued support,