Once again, prices are soaring. Whether it’s fuel for our cars, gas for our bake ovens or resins for our paints, we’re seeing substantial increases on just about all our manufacturing expenses, especially steel. Unlike some manufacturers that send out blanket price increases, we prefer to consider appropriate increases on an individual basis. Therefore, plan to hear that your next order is going to reflect some type of price adjustment. However, the real menace, as we look ahead to summer, is going to be the short supply of available steel. Several significant US steel mills will be closed this year for maintenance and the imported steel capacities are low. Combine these and we project that carbon and stainless are going to become “precious metals” for the rest of 2008. In order to plan for such shortages, Skolnik places long-term blanket orders that secure our steel supply for 6-12 months. We believe we have covered our bases for material continuity, however, even with these blanket orders, prices will fluctuate. I’ll do my best to make sure our customer orders are uninterrupted!
Industry News