02-07-2022, 02:26 PM
Bloomberg -
Surging prices of the raw materials needed for your refrigerators, automobiles, window frames and plumbing show no signs of abating as America’s supply-chain crisis spills into another year. John Gillespie is seeing the issues continue to mount across the country. The commodity manager for Superior Essex helps supply a large chunk of the metal wiring that electrifies U.S. homes and power grids and said the shipping and logistics charges for copper and aluminum are the most significant increase as part of the all-in cost.
Ongoing pandemic-triggered snarls are boosting the cost of trucks and rail cars to move things around, causing delays in shipping materials to consumers. Manufacturers of products are paying a record price to get hold of copper and aluminum.
"Boats are stuck out at sea and rail doesn’t have enough staff, so rail yards are crowded and my material is stuck behind 1,500 cars so they have to dig that out and it takes days to do that. The perfect storm is having a ripple effect and people are calling for metal, but the material is just not there.” - John Gillespie (commodity manager for Superior Essex, one of the nation’s largest suppliers of wiring)
- Scoot
“It is not the profit margin of the past but those of the future that are basically important to the investor.” Higher inflation raises a company’s expenses and, coupled with competition, will compress profit margins. Eyes have to be on how a company’s strategy will reduce costs and improve profit margins over the long term. - ― Philip A. Fisher
Surging prices of the raw materials needed for your refrigerators, automobiles, window frames and plumbing show no signs of abating as America’s supply-chain crisis spills into another year. John Gillespie is seeing the issues continue to mount across the country. The commodity manager for Superior Essex helps supply a large chunk of the metal wiring that electrifies U.S. homes and power grids and said the shipping and logistics charges for copper and aluminum are the most significant increase as part of the all-in cost.
Ongoing pandemic-triggered snarls are boosting the cost of trucks and rail cars to move things around, causing delays in shipping materials to consumers. Manufacturers of products are paying a record price to get hold of copper and aluminum.
"Boats are stuck out at sea and rail doesn’t have enough staff, so rail yards are crowded and my material is stuck behind 1,500 cars so they have to dig that out and it takes days to do that. The perfect storm is having a ripple effect and people are calling for metal, but the material is just not there.” - John Gillespie (commodity manager for Superior Essex, one of the nation’s largest suppliers of wiring)
- Scoot
“It is not the profit margin of the past but those of the future that are basically important to the investor.” Higher inflation raises a company’s expenses and, coupled with competition, will compress profit margins. Eyes have to be on how a company’s strategy will reduce costs and improve profit margins over the long term. - ― Philip A. Fisher