Shortages are real
The buzzword leading into the 2018-19 ice melt season is “Shortages”. Specifically, shortages on the bulk salt side of the business.
We all remember the unseasonably late fall/early winter warmth and no snow last year, followed by never-ending cold and blustery late season winter weather. Because of the snow storms in spring, salt piles dwindled down to nothing across the Midwest and Northeast. This provided a stark reminder that disruptions in normal weather patterns can wreak havoc on supply leading into the next season.
Or are they?
There are no shortages of salt, there are mines and large salt deposits all throughout the world that supply the United States with salt for winter deicing. The issue is having the right amount of salt in the right place at the right time.
The pipeline was wiped clear last season by late season weather and the task of replenishing supply is daunting. This has led to significant price increases in the bulk market and buyers are being forced to pay and take material. Although price increases and availability vary widely depending on location and proximity to supply, the Midwest seems to be struggling more than other regions of the US.
Suppliers, manufacturers, distributors, and end users alike struggle to pin point their exact needs for the winter and no one wants to stick their neck out too far in case winter doesn’t happen.
Affect on bagged ice melt
So, how do shortages in the bulk segment of the market affect supply of bagged product? Bulk salt is the least expensive option for deicing during the winter months, so it’s easy to understand why bulk salt is sold in such huge volume. However, when bulk salt is not readily available, or if the price of bulk salt begins to rise, demand can shift to straight bagged rock salt, or specialized, value-added deicing products. If storms begin to pile up, all options are utilized to create a safe environment on roadways, sidewalks, and at home. It becomes a situation where availability trumps price.
Planning Ahead
At EC Grow, we are fortunate to have a state-of-the-art storage facility that allows us to stockpile bulk medium-grade salt. We began planning for the 2018-19 winter season this past February, so we are ready for the season.
We do ask for help from our distributing partners and ultimately our end users to take product as early as possible. This helps us both with spacing out transportation (it is difficult to ship all the product at once) and in creating space for us to make and store more product. We are committed to filling up our warehouses with finished goods, but to fill them up, we need them emptied out.
Early Bird gets the Ice Melt?!
Although it’s too early to predict what kind of winter is to come, it sure feels like we’re due for a big one. My experience in this business has led me to throw out all the guessing by planning for the worst. Plans can always be adjusted as the season progresses.
One thing I am certain of is, this is not a year to sit on your hands. Be prepared and talk to your supplier about what’s going on……and do it now. If you wait until the first snowstorm, it’s going to be a long, tough winter.
EC Grow Ice Melt – “A Partner You Can Depend On”
