John Wolz

Prices dominated the top problems of 2006. The words FIN Survey participants used included: “Changing prices,” “competitive pricing,” “information on raw material pricing,” “material price increases,” “metal price,” “customer pricing,” and “steel price.”
Labor and people were frequently mentioned, including “hiring,” “labor availability,” “people,” “people availability,” “employees,” “lack of good employees,” “trainees,” “qualified people” and “skilled personnel.”
Cost also was mentioned in several ways: “controlling fixed costs,” “cost of Social Security,” “material cost,” “overhead,” “stainless steel costs,” “surcharges,” “coatings costs,” “energy pricing,” “health care cost,” “unstable costs,” “insurance cost,” “freight,” and “transportation costs.”
One manufacturer cited the “happy problem” of “capacity.”
Imports were mentioned numerous times: “offshore competition,” “foreign competition,” and “Asian import fasteners.”
Also mentioned were “automotive sales,” “bankruptcy,” “cut rate competitors,” “quality,” “product availability,” “packaged stock,” “customer demands,” “cash flow,” “late deliveries,” “customer project delays,” “general economy,” “lack of clear plan/forecast by prime OEMs,” “lead times from customers,” “raw stock,” “shortages,” “quoting process,” “slow payers,” “up & down sales,” and “general economy.”

A sampling of comments from FIN Survey participants:
“A strong year start to finish.”
“Lots of mergers and acquisitions. The larger companies are again buying and consolidating individually-owned distributors.”
“GM was not including costs for freight, duty, brokerage, overseas freight, temporary warehousing, labor, etc.”
“Need raw material.”
“Need people.”
“We are in a global market. Learn to love it.”
“Customers continue to be very tough in accepting necessary price increases. Lost 5% of margin.”
“Future deficit taxes as next generation pays for our spending.”
“FIN printed a great article in November citing the cause of Titanic sinking as poor quality rivets I think the culprit was a cheap, short-sighted purchasing agent. They still exist today.” \ �2007 FastenerNews.com