More buyers see price hikes imminent
By Staff -- Purchasing, 4/5/2001
Though most buyers continue to see generally flat pricing through April, more buyers this month see higher pricing in the near future.
About 55% of respondents believe that general pricing trends will remain flat through April. However, about 35% of buyers see prices increasing, which is about double the percentage of buyers who expected prices to increase last month.
In terms of overall business conditions in six months, respondents are evenly divided between better (36%) and worse (36%).
Almost 70% of buyers see material availability as normal. Seven percent say conditions are tight. Also, with the close of the first quarter, it appears that many buyers are beginning to look to rebuild their inventories. According to our data, 37% of buyers are looking to boost inventory levels.
Biggest buying problems:
Energy costs still dominate this month's buying problems, along with the need for more pricing stability, say buyers. Several buyers said they found it difficult to deal with supplier delivery surcharges due to oil and gas pricing, while others complained of long delivery leadtimes and low on-time shipping rates. Other buying problems included schedule changes, suppliers' personnel turnover and meeting purchasing budgets.
Items in short supply:
Caustic soda, methanol, urethanes, plastic polymer resins, acetic acid, DMA, sensors and fiber-optic components.
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