Material Impacts on the Precision Machining Industry - June 2010

All of the crucial raw materials that we track are up double and triple digits compared to the same month last year. Material cost component of our manufactured products is up, and holding, but subject to variability of global forces as well as local and market demands.

The prices of all raw materials that we track rose as follows over the past
year:

Aluminum: Up 48% from May 2009.
Brass: Up 49% from May 2009.
Copper: Up 49% from May 2009.
Nickel: Up 108% from May 2009.
Stainless: Up 75% from May 2009.
Steel, Busheling: Up 125% from May 2009.
China Coke: Up 13% from May 2009.

They may not call it inflation--YET. But all of the crucial raw materials we track are up double- and triple-digit percentages. In addition to the fundamentals in our local markets, there are global issues that add more risk and, thus, price variability to our industry’s raw materials.

The issue of knowing where to find material remains just as important as price in the current market.

Read the complete June 2010 Material Impacts Report (PDF format) here.

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Material Impacts on the Precision Machining Industry - April 2010

Prices of raw materials used to make precision machined products are up substantially, from 44% to 114% from March 2009 - March 2010 for 6 of the 7 materials we track. Low inventories, increasing demand and idled production facilities are among the factors involved here in North America, as are the historic iron ore agreement and continued high demand in China. Fuel price increases also impact freight, which is an important factor in our business. We will not be shocked to see monies paid for steel in May to be $80 per ton higher than they were in April based on already announced price increases and the current price on busheling.