Municipalities Brace For Cost Increases

Municipalities Brace For Cost Increases

Posted: 2020-07-23 07:27:55 By: thebay

The impacts of Covid-19 on supply chains are starting to impact local municipalities.

During the latest Bracebridge council meeting, councillors agreed to speed the purchase of two tandem axle trucks in an effort to get ahead of what they expect to be a jump in purchasing costs. 

Staff told the council that they can expect the cost of equipment to spike, as Covid-19 has created resource and supply chain impacts across the automotive market in North America. Staff said they’re already seeing prices start to jump across the board.

As such, staff are now reviewing all of their upcoming projects and trying to come up with a new plan to deal with the anticipated increase in their costs.

The cost of the two trucks and their associated winter control equipment is expected to be in the neighbourhood of $635,000.