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U s cutting tool manufacturers respond to rising costs by fsfshjk qwrfghjk
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U s cutting tool manufacturers respond to rising costs |
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Business,Business News,Business Opportunities
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Increasing raw material price rises is the U.S. cutting tool manufacturers are now facing the harsh reality, which prices may be occurring with increasing frequency, as the Cole Carbide Industries (Cole Carbide Industries Inc.) Suffered recently as. In addition, it may also lead to more frequent cutting tool manufacturers for their product price increase.
Cole, Executive Vice President John Cole of the sharp rise in raw material prices seems to have been shell-shocked. He recalled that in 2004 years ago, cemented carbide raw material prices rose about 2% a year, while after 2004 rose to about 5%. Thus, Cole believes that as long as the annual price increase of no more than 4%, there would be a big problem. But when his company faced several times within one year of rising raw material prices, the situation is completely different. Cole Carbide Corporation in early 2008, rising raw material prices by 3% to 4%, to June Shiyou rose 2% to 3%, the estimated end of the year will be another rose 2% to 3%. In addition, the carbide is not a price the only raw materials faster than the former. After 2004, tool steel prices rose an annual 2% to 3%, while the annual rate of increase in the past two years to reach 5% ~ 18%. Despite the recent 3 to 4 years, prices have been rising, but the real peak is the last 18 to 24 months thing.
Tool manufacturer GKI Inc. (GKI Inc.) CEO Olaf Klutke said that since 2006, his company's tool steel raw material prices have risen about 25%, and now rally in prices of raw materials and oil or gold prices does not seem to phase from top to bottom. "Raw materials are now almost become a commodity," Klutke that its price is very unstable compared with the past, almost every day to change.
Keo Cutter Tool Manufacturers Inc. (Keo Cutters) mainly produces high-speed steel cutting tools. The company's engineering and purchasing manager Dirk Schadwinkel said that since 2004 a quarter of high-speed steel prices is almost three times the former.
In response to rising raw material prices, Cole is trying to improve their production efficiency in order to minimize price increases of its tool products. For example, the company has to manually grinding equipment upgrades for the automatic grinding machine, so that a worker can simultaneously operate multiple devices. The company will also process the development of software and equipment into its manufacturing processes to improve production efficiency.
However, cutting tool manufacturers are sometimes forced to increase prices of their products. For example, GKI part of the company although he digested the supplier price increases, but still part of the increased product prices. Klutke said the company is closely monitoring the competitor's product price, and partly based on these information to determine their own prices strategy, "In the tool industry, we have this product in the past year or so of the price increases of about 5% ~ 8%. "Keo tool the company's products are in excess of the previous rate of price increases. Schadwinkel said the company's price increases over the past time interval of about 2 ~ 3 years, but most of the recent price hikes of the interval less than 5 months.
Of course, the tool manufacturer's cost is not just raw material costs, other costs of the tool also has a great impact on the price, and with the same raw material costs, many costs are the tool beyond the control of the manufacturer. For example, it Klutke is estimated that the cost of tool steel to the GKI's only about 15% of the total expenditure, although the tool steel price rises high (25%), but compared with other costs rising, it's the impact of the budget is not the greatest. Tool manufacturing enterprises are labor-intensive enterprises require a large number of skilled workers, which increases labor costs are the most powerful part. Klutke estimated that due to wages, staff salaries and employee benefits of growth, GKI the company's labor costs over the past 10 years has doubled. In addition, he specifically pointed out that an employee's medical insurance costs are also a significant increase from last year, the company's health-care costs increased by 43%, as a small business, buying insurance, limited ability to negotiate with the insurance companies are also it is difficult to secure more favorable insurance policy. I am China B2B Market writer, reports some information about pilot operated solenoid valve , flat fan nozzle.
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