Copper & lubricating oil prices jump
While economists are busy revising their inflation forecasts upward, plant managers are already living under the strain of today's new inflationary environment.
While economists are busy revising their inflation forecasts upward, plant managers are already living under the strain of today's new inflationary environment. For example, plant engineers now are shelling out considerably more for copper wire and copper tubing than a year ago. In the 12-mo period ending April 2000, prices in the copper rolling and drawing industry increased 5.1%. That's quite a reversal from the 12.8% price decline in copper rolled products during the 12-mo ending April 1999.
Another inflationary hot spot is lubricating oils and greases. Here, average industry prices jumped 2.2% in the 12-mo ending April 2000, up from a 0.3% price hike 12-mo prior.
Unfortunately, both the drawn and rolled copper and lubricating oils industries have a good case for their inclination to hike prices. Both industries have seen their margins suffer under the burden of escalating costs. Unalloyed copper prices, for instance, rose a whopping 30.5% between April 1999 and April 2000. And the cost of materials received from refineries by lube manufacturers soared 46.3% over the same period.
1Average product price changes are calculated from the producer price index for each 4-digit SIC (standard industrial classification) industry from the U.S. Bureau of Labor Statistics.
the average producer in an industry. Grades of A to A+ mean plant engineers may be able to strike a better bargain with suppliers and better control plant costs.
3Growth in U.S. end markets data are from the ICE model and are estimates of output for the domestic end markets which purchase a given industry's products.
All data prepared and presented by Thinking Cap Solutions, Inc., Port Angeles, WA (telephone: 360-452-6159; e-mail: firstname.lastname@example.org).
- Events & Awards
- Magazine Archives
- Oil & Gas Engineering
- Salary Survey
- Digital Reports
Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey