How have we been saving our customers a pile of dollars?
When we last addressed the Canadian Loonie and its impact on pricing, it had suddenly risen against the American dollar all the way past par to $1.10. Since then it has dropped back almost as quickly to about par. Predictions for the future are all over the map, but most seem to be suggesting that around par is where it will be for the next little while.
Another influence on screen printing ink and chemical pricing is the price of oil which is around $99.00 today and threatening to go over $100.00 a barrel as we write this. The price of oil influences transport costs, which accounts for the approximately 5% increase being put through by the trucking companies.
Given the increase in the cost of a barrel of oil, eight increases in the price of plasticizer over the past 9 months and increases in resin prices, we are expecting another price increase from the manufacturers of around 5% early in 2008.
Over the past year or so Screenflex has been offsetting the manufacturers’ increases against the improving Loonie. We are also going to try to absorb the next increase. And in addition to that, we plan to stick with the price reductions that we have been making.
That is how we have been saving our customers a pile of dollars.