Monday, September 5th (22'), Russia Terminated Nord Stream 1 Supply of Natural Gas.
EU Energy Prices Rose + 500%.
Tuesday, October 18th (22'), Nord Stream 1 pipelines were blown-up, destroying ability for the supply of natural gas.
eU energy prices Rose + 1000%.
This Impacts tile Pricing, Production capacity and manufacturing lead-time's For
Tile Materials that Supply Your Automotive Project.
AutoStoneUSA “Made In America” Tile is The Answer.
AutoStoneUSA Keeps Your Builds On Schedule And On Budget.
What Do Geopolitical Experts and Manufacturing and Distribution Industry Leaders Say?
Peter Zeihan, GeoPolitical expert & Founder of zeihan on geopolitics
One of the top consulting resources AutoStoneUSA references is Peter Zeihan, a geopolitical expert and founder of Zeihan on Geopolitics. He is one of the USA’s top geopolitical experts on these matters and his viewpoints, books, and outlook have heavily influenced AutoStone USA to relocate production to the USA. To summarize “the shorter the supply chain and closer to your customer, the better you will be”.
Watch the video to the right to understand Zeihan’s view on European manufacturers struggling to adapt to the new evolving markets.
Europe's Natural Gas Challenge
Published September 8th, 2022
Nord Stream 1 Pipelines Blown-Up
Published September 8th, 2022
Russia-Germany pipelines damaged by 'deliberate actions'
The immediate and long-term ability for European produced porcelain tile products, which are heavily dependent upon inexpensive and readily available natural gas has suffered another blow. With 40% to 70% of EU natural gas previously being supplied from Russia, this changes the entire supply chain supporting automotive retail and service industry product options and suppliers.
Price increases of 40% or more are being forecast with more increases to come. Additionally, lead-times, shipping costs and product availability will be dramatically impacted.
AutoStoneUSA “Made in America” materials do more than reduce risk, costs, and lead-times. We reduce fossil fuel use and our carbon footprint. When you measure the entire “supply chain” from sourcing raw materials to delivery of product to your facility, AutoStoneUSA significantly reduces our carbon footprint.
AutoStoneUSA quarries regionally to our manufacturing and AutoStoneUSA warehouses are near our manufacturing facilities. Our supply chain is short, efficient, and effective. In summary, the AutoStoneUSA Quarry to Kiln method significantly reduces carbon emissions, costs, and supply chain risk.
Current News Stories (08/31 thru 9/06) Russia-EU Natural Gas
Below are a few stories you can refernce on the termination of natural gas supplies from Russia to the EU. This singular event will have a consequential and significant impact on EU industry and specifically tile industrial production for years to come. The immediate effect is tile prices have risen over 60% (with more hikes coming), extended production times, higher transport and shipping costs. This is a fundamental shift that impacts your automotive brand program and dealership facility project.
European natural gas prices have soared over 500% compared to a year earlier.
What is AutoStoneUSA's response?
AutoStone USA Tiles
Made In America
Q2K Model Reduces Carbon Emissions
Domestic Production
Efficient Distribution
Updated ANSI A326.3 DCOF Requirements
The biggest risk your automotive project and related construction schedule faces is reliance on EU produced tile Germany (clinker tile), Italy and Spain. AutoStoneUSA builds in the USA, which eliminates supply chain risk. Why are EU manufactured products at risk? On Monday, September 5th, 2022, Russia permanently stopped supplying natural gas to Europe until the EU sanctions over invasion of Ukraine are ended have caused them to rise more than 500% this year and more since this announcement. In short – natural gas sent through the Nord Stream 1 Pipeline, has now been permanently turned off 9/5/2022 and manufacturing in Europe will require at least 3-5 years to restructure at soonest.
Automotive programs and projects will see increases in material pricing, shipping & transport costs as well as delays in deliveries on EU supplied tile materials. The energy issues have been masked due to the war starting in the spring when domestic use of natural gas has been at lowest demand level. However, with winter of 2022 approaching, EU tile producers will be facing significant energy shortage issues that will impact US automotive construction projects using EU manufactured tile.
AutoStone USA domestic production evolution
AutoStoneUSA repositioning our global supply chain in 2015. Today, AutoStoneUSA produces 75% of our products in the USA and 90% by the end of 2023. AutoStoneUSA can build your automotive image program or supply our USA-manufactured tile to support your automotive brand. If your program uses imported tile materials, it makes sense for your program or project to include American Made tile products so construction budgets and schedules can be maintained. AutoStoneUSA is the best vendor to make this seamless process happen.
American Production Reduces Wasteful Fossil Fuel Use
Trans-ocean shipping is heavily dependent on over-stressed ports which include over-land trucking and transport. This further expands use of fossil-fuels. Additionally, AutoStoneUSA warehouses near our production and we eliminate shipping through distribution systems and instead ship directly to your project site.
Quarry to Kiln (Q2K) Distribution Model Reduces Carbon Emissions
Our “Made in America” materials do more than reduce costs. We reduce carbon emissions by eliminating trans-ocean shipping. We source raw materials regionally and near our production facilities. We eliminate the import of raw materials from other countries which repeat the dependency of fossil fuels and trans-ocean shipping. AutoStone USA manufactures in state-of-the-art, energy and environmentally efficient facilities.
Porcelain Tile, Kilns and Natural Gas
With rolling brown/blackouts anticipated, no EU countries have enough natural gas reserves to allow kilns to shut down in anticipation of shortages. This complicates things greatly.
Natural Gas Interruptions Place Greater Risk on Kiln Production Equipment
With rolling brown/blackouts anticipated, no EU countries have enough natural gas reserves to allow kilns to shut down in anticipation of shortages. This complicates things greatly.
Domestic Production, Efficient Distribution
The former J-I-T, just-in-time production model is no longer sustainable after pandemic and with AutoStone USA’s shift toward domestic production this simple adjustment creates a seismic impact by creating American jobs, by supporting local communities, and by increasing domestic investment. No other tile company has committed to domestic (USA) production in support of the automotive retail facility like AutoStone USA. If you like US manufacturing, local raw material sourcing, American workers, and continued US investment, please consider AutoStone USA for all of your automotive facility builds.
AutoStoneUSA reduces tile production carbon footprint
AutoStoneUSA “Made in America” materials do more than reduce costs. We reduce carbon emissions by eliminating trans-ocean shipping. We source raw materials regionally and near our production facilities. We eliminate the import of raw materials from other countries which repeat the dependency and use of fossil fuels, and additional trans-ocean shipping.
Trans-ocean shipping is heavily dependent on over-stressed ports which include over-land trucking and transport. This further expands use of fossil-fuels. Additionally, AutoStoneUSA warehouses near our production and we eliminate shipping through distribution systems and instead ship directly to your project site.
Updated ANSI A326.3 DCOF Requirements
Quarry to Kiln (Q2K)
Distribution
Model
AutoStone USA’s Quarry to Kiln Distribution Model demonstrates how our products are locally sourced and domestically warehoused which means consolidated shipping direct to your dealership which saves you money in your overall project.
