What do shipping containers and patio heaters have in common? Hotels and other hospitality businesses rely on both of them and they are in short supply.

Furniture, fixtures, and equipment (FF&E) plans and budgets have been hit particularly hard by the global pandemic and the resulting supply chain issues.

What is the official FF&E meaning?

FF&E means Furniture, Fixtures, and Equipment and describes the items in every building (hotel, hospitality, resort, golf course, etc) project not normally part of the contract between the owner and building contractor.

Kitchen equipment and supply costs, for example, have been impacted by significant increases in the cost of stainless steel and aluminum. Lumber shortages not only affect availability and prices for furniture but also make it hard to build pallets for shipping other FF&E supplies. Labor and materials shortages, port congestion, rising fuel costs, and inflation have made careful planning more important than ever.

Avendra is currently advising our FF&E customers who need outdoor furnishings to order them immediately for two reasons. The first is lengthy delivery schedules. We expect outdoor furniture items and patio heaters to take as long as 20 – 30 weeks for delivery. The second is continued price increases. Don’t wait for supply chain issues to ease thinking prices will go down; we anticipate continued price increases for the near future.

Ordering your summer furnishings now helps ensure you have FF&E inventory when you need it. Many manufacturers will hold pricing once the order is placed. Purchasing sooner rather than later will save you money. Also, if you can purchase an item when it’s available, you should do so. It may go out of stock and take significant time to be replenished due to raw material, shipping, and labor shortages.

Avendra’s most recent Q1 2022 Commodity Market Update indicates that energy and transportation costs will remain high; a tight labor market will persist; and raw materials and packaging components will still be in short supply through early 2022.

It’s not all gloom and doom though. Items like mattresses and ice machines are becoming available with shorter lead times. We anticipate other supply lines to become more fluid as 2022 progresses. The complexity of the supply chain means it will simply take some time to smooth itself out and flow freely again. Prices will remain high, though, and we’re advising our clients to plan for a 5-15% budget increase in most categories.

As our clients have faced the tumult and uncertainty of the last two years, transparent communication has been essential. The longstanding relationships and trust we have built with our suppliers has ensured open communication with them. Suppliers have been good at communicating potential and actual disruptions to us. That allows us to help our customers plan and purchase appropriately.

Avendra’s FF&E Services is your single source for replacement kitchen equipment and decorative furnishings. Avendra’s FF&E team works with hundreds of suppliers offering thousands of different products. Whether you need a new refrigerator, oven, or ice machine for the kitchen or are looking for carpeting or tables and chairs for your guest rooms, our dedicated team of experts is here to serve you and to save you time and money. In addition, Avendra offers free freight on select, nationally recognized kitchen equipment and decorative furnishing supplies. Our contracts and purchasing volume ensure you pay the lowest possible price. Speak with one of our representatives to get a free quote and learn how Avendra can provide you with cost-efficient and consistent procurement solutions that take the hassle out of ordering FF&E.