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
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.