Got a bad feeling about this - prices are going up

[MagicMtnDan]

A supplier I buy from has raised their list prices 15% and raised their costs 25% which is most important. This means they've raised their prices significantly and to do so, squeezed their distributors (which may mean they're going to have to sell more product directly since distributors won't be happy with the margins they're now offering).
Bottom line is I'm hearing about price increases more every day. Especially on steel products (some are talking about a "steel shortage"). The state of the economy can be debated but it won't be necessary to debate it for long if we see prices jumping up across the board on all types of products.
Looks like the need to increase prices has built up to the point that the pressure is bursting the bubble. Hold onto your wallets this could be a bumpy ride.

[haulina29]

The energy and building material companys are in the process of sucking the life out of the country . Some of the opec companys have refered to this as wealth redistribution . They are doing the same thing to the country as the power companys did to California . your right hang on its gonna get ugly real quick . the 10 year ride is over . Thats what happens when you dont produce your own stuff! and when you let 4 out of five oil companys sell to other countrys . We have nobody to blame but ourself .

[River Lynchmob]

you are right i'm in the HVAC business and our steel prices have gone from 29 cents a lb to any where between 43 and 56 cents a lb. the reason is that is all going over seas to china. good news is i read an article that to keep inflation from running out of control the chineese government is going to slow down construction to keep inflation managable. so hopefully we are at or very close to the ceiling right now. one can only keep their fingers crossed. the good news from our standpoint is that construction is now slowing down and the developers are paying the extra costs that are being passed on to them. the architects i talk to say they have a larger backlog than they ever have as fo the general contractors. so lets keep our fingers crossed that the prices come back down the the developers keep building.

[v-drive]

We all knew that the increased fuel prices would drive everything up, it was just a matter of time. The loss of Bethleham steel was a blow to industry and I really don't like asain steel. I understand the times they are a changing but does it have to happen so suddenly. :frown: v-drive

[haulina29]

After the the stock market boom of the 90s cheap interest rates fueld the economy, With inflation on the rise and interest rates creeping up its gonna slow down some of these larger builders are going to get stuck with large inventorys , when this happens they discount and home prices tumble . Im a general and have been through three ten year cycles , I hope im wrong my advice is if you have some cash laying around hang on to it .

[kcm21]

Because of China taking almost all of our steel, and not only prime material but scrap also, at higher prices many of the U.S. steel companies are still willing to sell to U.S. manufacturers but they are increasing the prices. But many of the large manufacturers have contracts with the steel companies so they cannot raise prices, so what the steel companies are doing is adding "surcharges" to the steel. In my industry the steel companies have already tacked on a 70$ per ton surcharge which equates to about a 6.5% price increase and they have another 130$ per ton surcharge schedulaed to take effect in May. Which in turn to keep our profit margins we are forced to raise prices and listen to our customers yell at us. Funny though it is not only steel, natural gas is increasing whic raises the cost of resin and plastic products. The dairy industry is raising the price of milk and other ingredients which inturn is raising the cost of our beloved ice cream!

[Mandelon]

Don't forget Lumber......2x4's are $3.00 a piece.
Don't think about building a fence either. $3.89 for a cedar or redwood fence board.....

[AdrenelineOD]

I guess I`m going for a ruff ride! I`m still waiting for my General, test date!( CA. I have 1 for NY) Any advise?:eek:

[haulina29]

Adreneline I say go for it tought times weed out the week there is and will be for along time money to be made in California just proceed with caution , make sure the people you are working for have the cash to back up there projects . Dont go out and buy all new stuff I wouldnt change what I do for anything building has been very good to me . ;)

[haulina29]

Huffpower you hit it right on the head . The Saudis spoke up yesterday about the world economy and the impact that pricing was having on it and the futures dropped a buck a barrel yesterday useless pricks .

[Nubbs]

Originally posted by Mandelon
Don't forget Lumber......2x4's are $3.00 a piece.
Don't think about building a fence either. $3.89 for a cedar or redwood fence board.....
I just paid $96 for 2 sheets of 5/8" thick plywood siding. :mad: The 5' wide redwood gate on our house just cost about $160 in material alone.

[FRENCHIE]

as long as they dont put up the price of ...COORS LIGHT!;)

[lucky]

Originally posted by Mandelon
Don't forget Lumber......2x4's are $3.00 a piece.
Don't think about building a fence either. $3.89 for a cedar or redwood fence board..... the redwood people just gave us a fuel sur. for our trucks - it will be passed on