Global supply chain issues and inflation are projected to affect the cost and availability of goods for Citizens Electric Corporation into 2023 or longer. Disruptions in manufacturing and material shortages could cause delays in the installation of new services and alter infrastructure planning. In many cases, lead times for materials have risen from months to a year. “Longer than usual lead times and production constraints have impacted inventory levels, making it difficult to accommodate project planning,” said CEC Vice President of Engineering, Jason Cates.
Maintaining a reputation of reliability and stability continues to be a priority for Citizens Electric, however, the corporation faces challenges that could begin to strain local operations, planning, and project executions across the six county-wide service territory. New project and maintenance delays could become longer and more frequent if supply chain challenges remain high. To mitigate inventory shortfalls, Citizens Electric has remained proactive in meeting with commercial and industrial members to communicate potential delays. Additionally, the entire operations team is making efforts to reduce inventory shortages by prioritizing work, frequently monitoring inventory, and suspending requests that require unavailable materials.
Vice President of Operation, Curt Iffert says, “Members who are anticipating larger services or service upgrades for commercial and industrial loads are asked to please contact us immediately so that we can do our best to ensure that we meet deadlines and not be a source of delay.”
The National Rural Electric Cooperative Association (NRECA) works with political leaders to keep them informed of challenges faced by local co-ops. Additionally, Citizens Electric Chief Executive Officer, Van Robinson recently visited Washington D.C. on behalf of member-owners to address such challenges. Global supply chain issues and inflation have left no person or corporation untouched, but members can rest assured that Citizens Electric will remain dedicated to monitoring the situation and protecting members from price volatility and material shortages.