Rising Prices and Declining Availability
Tuesday, July 13, 2010
Price increases and product availability have been issues for our industry since the first of the year. With China signaling a rise in value of its currency (RMB) agains the dollar, it compounds the predicament of high cost and perpetuates the problems already faced by our industry. High demand and low supply in all aspects dictate current pricing structue:
Cost Factors - Insufficient raw material in latex, nitrile, PVC, rubber and cotton just to name a few - Shortage of labor creating an upsurge of labor costs in the low-end commodity industry vs competitively higher wages offered by the higher ticket manufacturing sector - Historically high ocean freight rate transportation costs
Thumbs Up Glove & Safety, Inc. is committed to monitoring the global market to ensure our customers stay informed of factors driving product availability and pricing.
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