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Ed Brindley -> RE: nails (6/27/2008 9:43:36 AM)
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Costs of pallet manufacturing are going up on all fronts. Lumber, nails, and freight - all three elements of the equation that are outside of our own four walls. People who subscribe to and read the Pallet Profile Weekly have been kept informed about higher nail prices. While this doesn't make it any easier to accept, at least it helps keep readers informed. Within the next few weeks, the Profile plans to put together a white paper that explains the increases in these three elements in straightforward terms so our readers will have credible information from a source outside of their company to share with customers. We are also planning to develop a white paper specifically on the nail and steel issue. Any pallet manufacturer or recycler can keep up with these kinds of issues by subscribing to either the Pallet Profile Weekly or Recycle Record. It looks like inflation is growing daily as a concern. While we make no promises about tomorrow, did you known that these two reports are selling for the same price today they did when they were first developed? They are the only market reports that focus on the pallet industry, and they sell at prices that are lower than those for most specialty focused newsletters and price reports. The Profile has been around for over 31 years without a price increase so far. Today our reports are better than ever before which makes them a bigger growing bargain every day. Call Jeff McBee at 800/805-0263 for information. Hope all of you continue to enjoy the Pallet Enterprise which has been provided to you for no charge for over 26 years now. To set the record straight, you cannot save $.10 to $.20 per pallet by buying nails from China, not in today's market (even in Canada). In addition, are you certain that the domestic rod and wire markets can supply our domestic nail manufacturing needs? We are now in a global marketplace. It is increasingly difficult to get a consistent deal off shore that is better than domestic supplier arrangements. Keep in mind that having dependable nail supplier relationships is important. You cannot keep switching horses with each race, particularly when you are dealing half way around the world. It is increasingly difficult to navigate the difficult waters of today's markets. All of us hope that nail prices soon level off, or maybe even start down. Keep in mind, however, that they are a function of the world steel market, which has continued to go up every month this year. For the record, our sources suggest that both July and August are going to see higher rod and wire prices. It is difficult to look out much further because we do not receive information from the players in the steel market much further out than that. Call us at 804/550-0323 if you want to discuss today's pallet market and its key cost items. Join our readership to receive unbiased information that you can use at your discretion with your customers. Our plans call for developing white position papers as needed on key issues for our readers. Sincerely, Ed Brindley, Ph.D. publisher
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