• Near Toulouse, a manufacturer of wooden chalets was supplied in Russia and Ukraine.

  • The SME Log House has for the time being focused on Estonia and Poland.

  • But its supply costs doubled in three weeks and its deliveries fell behind schedule.

Times are tough for small businesses that imported their raw materials from Ukraine or Russia.

In Fenouillet, in the northern suburbs of Toulouse, the SME Log House France, which manufactures chalets, knows something about it.

No more cedars or Siberian larch.

As the conflict in Ukraine drags on, the company of Loïc Nicolas, 55, who imported the wood needed to build his chalets from the two countries now at war had to opt for a parade.

“We found an alternative for our new customers thanks to the relocation of our suppliers to Estonia and Poland,” explains the craftsman.

But for customers who had placed an order before the conflict, we find ourselves blocked because the stocks were supposed to come from Russia.

Restarting manufacturing can take four to five months.

»

Moreover, the reorganization of the circuit is proving costly since, according to the entrepreneur, its production costs have doubled in less than three weeks.


“We have no visibility”

If the company could boast of selling two chalets a month before the conflict, today five of them are late.

“We may have to relocate customers who could not be delivered if the conflict drags on, worries the boss.

I already know that two big companies in the sector have just stopped their activity…”

While the current situation is already difficult for his company, Loïc Nicolas is not very optimistic about a resolution of the conflict in the weeks to come.

Since Estonia has a common border with Russia, he has already started looking for suppliers in Slovakia in case the conflict spreads to other countries.

For the time being, he especially hopes that public aid will arrive.

“We are waiting to see what the state will do for small SMEs like us who worked with Russia.

For example, we hope for financial aid or the possibility of borrowing at attractive rates.

It was already not easy with the Covid, there we have no visibility.

»

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  • Elections

  • SME

  • War in Ukraine

  • Russia

  • Economy

  • Toulouse

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