Business & Technology Nexus

Dave Stephens on technology and business trends

PPI – Raw Material Price Increases Starting to Show Through

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NY Times ran a good story about core PPI here. Inflation concerns continue to weigh. As I mentioned in previous posts, shortages of raw materials, primarily due to outstanding growth in emerging markets, is beginning to “trickle through” into component costs. As the article mentions:

“In recent months, analysts have registered concern about increases in the cost of raw materials, up 12.9 percent in February from a year ago, and goods in intermediate stages of production, up 8.2 percent.”

Good sourcing tools can help contain price increases and deflect them into lower operating margins and profits for your supply base instead. But be careful! Look to expert sourcing blogs like David Bush’s esourcingforum for advice on strategies to win over the long haul.

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Written by Dave Stephens

03/21/06 9:41 AM at 9:41 am

Posted in Opinion

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