Buyers see price increases on the rise
By Staff -- Purchasing, 1/13/2000
More buyers see price increases. The percentage of buyers reporting price increases gained seven points this month to 52%.Only about 33% of buyers surveyed expect business conditions to be better six months from now. A little more than half (52%) of respondents expect business conditions to be the same in six months.
Materials availability is normal, according to 76% of buyers. Fifteen percent of buyers say materials availability is tight, and only 9% report loose availability.
Physical inventories nearly stabilized this month. Forty-one percent of buyers say that inventories are holding steady, which is only a one-point drop compared with last month.
While more than half of buyers say they're holding capital spending levels (51%), 20% say they're increasing capital spending in the next 12 months.
Biggest buying problems:
Preventing prices from increasing, like last month, is the most common problem facing buyers this month.
Another growing problem, supplier consolidation, is narrowing competition in many markets.
In addition, a buyer in California says that he is "being directed to do non-purchasing tasks in a squeezed time frame."
Items in short supply:
Materials buyers say are in short supply this month include acetone, chlorine, caustic soda, versene and titanium dioxide. Finding skilled labor and paperboard materials continue to be challenging for buyers, according to the survey.
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