Cap prices drop

By James Carbone -- Purchasing, 2/12/1998

The U.S. capacitor industry's direct manufacturing costs have begun a cyclical swing upward. In the 12-month period ending December 1997, costs rose 0.4%, according to Boston-based Thinking Cap Solutions. Materials costs continued to fall in December '97, but the rate of decline was far less sharp than 12 months earlier. Aluminum sheet and precious-metals costs (excluding gold) have been the main culprit in the cost turnaround, while inbound freight and direct labor costs each rose about 3% last year. Meanwhile, manufacturers' margins are getting squeezed. Average producer prices for U.S.-made capacitors continued to fall 1.7% in 1997.

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