Careful planning required during cable management materials shortages
![]() |
In July 2021, leading electrotechnical and engineering services body ECA urged its members, as well as the wider industry, to exercise caution and plan as far ahead as possible on projects involving cable management systems (CMS).
The message came after manufacturers' body BEAMA warned that long lead times for CMS supplies could continue into Q1 of 2022, coupled with increasing raw material costs. Factors cited to be behind this supply problem include shipping and shortages of timber and cardboard, which are affecting packaging.
ECA CEO Steve Bratt commented, “Extra care should be taken when planning projects and with project costings. For many, ongoing delays in the availability of some cable management system materials will continue to have a negative impact on cost and completion time.
"With this in mind, our advice to the industry is to order your CMS materials in good time to ensure you can finish as planned. ECA will keep members informed as the situation develops.”
ECA held an exclusive webinar with the Electrical Distributors' Association (EDA) and BEAMA examining the impact of the materials shortage on the electrical sector. The full session recording can be viewed here.
Rob Driscoll, ECA Director of Legal and Business, commented, “Following the impact of coronavirus, the Suez Canal incident and Brexit, we have seen demand rocket in an environment of restricted supply. As feared, margins have been squeezed to breaking point. For electrotechnical and engineering services contractors experiencing growing demand for projects as we emerge from lockdown, our advice remains: plan, plan, plan!”
ECA reiterates the continuing need for contractors and installers to engage with manufacturers and distributors as early as possible about their ongoing CMS requirements. ECA has published comprehensive guidance on the situation and the various commercial and contractual options for managing associated risks. This is available here for ECA members.
This article originally appeared on the ECA website under the headline, 'ECA urges careful planning amid ongoing materials shortage'. It was published on 22 July 2021.
--ECA
[edit] Related articles on Designing Buildings Wiki
- Articles by the Electrical Contractors' Association (ECA).
- BEAMA.
- Cable.
- Material shortage on construction projects.
- Materials shortage prompts extra planning.
- Stainless steel in construction.
- Shortages of cable management products.
[edit] External resources
Featured articles and news
Download your free guide.
Four new types of prior approval for solar developments
Online Planning Portal application types from 5 September.
Election fails to spark construction industry revival
Contract awards and planning; post election.
Making diversity and inclusion easy for SMEs
The CIOB tool for companies with limited resources.
Sustainable Futures: Redefining Retrofit for Net Zero Living
BSRIA Briefing 2024, initial speakers announced.
Looking back at the UK's first Passivhaus leisure centre
Reflections on St Sidwell’s Point with CIAT.
A-Level results and electrical apprenticeships
Electrical Skills Index highlights areas with skills shortages.
One of the world's more unusual drive-throughs.
A quick introduction.
Hadrian's Wall Path and the national trails
The trails are heritage assets in their own right.
Articles on timely advice and hydraulic lime.
Building Designers Association of Australia
CIAT and BDAA sign Memorandum of Understanding.
Built Environment Inclusive partners issue statement committed to inclusion.
Building regulation requirements can have unintended consequences.
CIOB announces 2024/25 vice president
Sustainability champion Professor Saul Humphrey.
Accelerating towards a net-zero built environment.
Comments
A cash flow forecast is a financial planning tool that projects the expected inflows and outflows of cash over a specific period, usually on a monthly or quarterly basis. It helps businesses and individuals assess their anticipated cash position and make informed decisions about financial management. Here's how to create a cash flow forecast:
1. **Identify the Time Period**: Determine the period for which you want to create the cash flow forecast. It could be for the next month, quarter, or even the entire year.
2. **Inflows of Cash**: Start by estimating all the sources of cash inflows during the chosen period. Common sources may include sales revenue, accounts receivable collections, loan disbursements, investment income, or any other incoming funds.
3. **Outflows of Cash**: Next, identify all the expected cash outflows. These may include expenses such as salaries, rent, utilities, supplier payments, loan repayments, taxes, and any other regular or one-time expenses.
4. **Account for Timing**: Consider the timing of cash flows, as some may not occur evenly throughout the period. For example, you might receive a large payment at the beginning of the month but have several expenses spread out over the month.
5. **Adjust for Non-Cash Items**: Cash flow forecasts focus on actual cash transactions, so exclude non-cash items like depreciation, which do not involve cash movements.
6. **Account for Seasonal Variations**: If your business experiences seasonal variations in sales or expenses, adjust your forecast accordingly to reflect these fluctuations.
7. **Factor in Contingencies**: Consider any unexpected or one-time cash flows that may occur during the period. This could include unexpected expenses or windfall gains.
8. **Create a Spreadsheet or Use Accounting Software**: Organize your forecast in a spreadsheet or use accounting software that allows you to input and calculate cash inflows and outflows easily.
9. **Monitor and Review**: As the period progresses, track the actual cash flows and compare them with your forecast. Regularly review and update your forecast to account for any changes in circumstances.
10. **Use for Decision-Making**: The cash flow forecast should serve as a valuable tool for financial planning and decision-making. It can help you identify potential cash shortages, plan for necessary borrowing or investments, and make informed choices to improve your financial position.
A well-prepared cash flow forecast provides valuable insights into the financial health of a business or individual, helping to anticipate and manage cash flow fluctuations and maintain a stable financial position. It is especially crucial for businesses to ensure they have sufficient liquidity to meet their financial obligations and seize opportunities for growth.