Lubricants face price hike in 2000
Plant managers beware: Suppliers of lubricating oils and sealants, as well as purveyors of abrasive products, might be on the hunt for price hikes. Both these industries scored a D grade in the Plant Engineering cost analysis table (opposite page).
Plant managers beware: Suppliers of lubricating oils and sealants, as well as purveyors of abrasive products, might be on the hunt for price hikes. Both these industries scored a D grade in the Plant Engineering cost analysis table (opposite page). This grade means recent changes in the industries' manufacturing costs and changes in the prices that suppliers are charging for their average product have damaged the average supplier's bottom line. Suppliers will be looking for every opportunity to raise prices and repair their shaky margins.
Consider the case of the lubricating oils and greases (SIC 2992) industry. Thanks to the recent run-up in crude oil prices, the cost to manufacture oils and greases jumped 13.1% between October 1998 and October 1999. The prices that manufacturers charged for their products, meanwhile, rose over the same time by only 2% on average. As a result, the industry lost a potential $6.92 in margins for every $100 of product sold. If lubricating grease manufacturers tried to restore margins to levels held a year ago, then there would be a 10.9% hike in prices.
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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