Costs Soar in 2004

John Wolz

Nearly 80% reported moderate to strong cost increases in 2004, with the cost index jumping 28% to 4.1 the highest level since FIN began tracking costs in 1994. The gain was nearly 14% higher than estimates made at the beginning of 2004.

Less than 10% of respondents reported cost declines last year.

Cost increases hit manufacturers harder than distributors in 2004, as 90% of manufacturers reported cost overruns to an index of 4.4. About 71% of distributors recorded cost increases to an index of 3.9.

In 2005 three out of four distributors expect costs to continue rising, while only 66% of manufacturers predict further increases.

The overall FINdex projection for 2005 is 3.8, with more than 72% expecting costs to increase. Less than 20% expect costs to drop in 2005. \ �2005 FastenerNews.com