Connector costs rise

By Staff -- Purchasing, 2/22/2001

In the 12 months ending December 2000, direct manufacturing costs in the connectors (SIC 3678) industry increased 3.4%. The culprit has been the cost of imported materials that domestic connector makers use; imported materials costs rose 5.3% in 2000, after falling 2.9% in 1999. Additionally, inflation in the connector maker's heat and power budget jumped 6.8% in the 12-month period ending December 2000. Amazingly, average prices for completed connectors sold to buyers, meanwhile, only rose 0.4% in 2000 after a 0.02% hike in 1999. But because cost hikes don't usually get passed into comparable price hikes, buyers can expect last year's cost troubles to make just small waves on the 2001 price landscape.