Manufacturers: Factor-In Rising Job Site Materials Cost
By: Brian Barlow – President/CEO
3/22/2006

In the past two years, diesel fuel costs have risen 88%. Iron & steel prices have climbed 60%. Asphalt paving mixes 10%. Sand, gravel and crushed stone 11%. Ready mix concrete 18%. Construction machinery 10%. 2006 should see some stabilization in specific raw materials and others will increase further. The stats and economist predictions are easy to find.

Fortunately for the most part, the construction industry remains strong. However, equipment manufacturers need to watch the effects of rising project costs on both private and government work. We are seeing the volume of projects and the scope of many projects reduced to compensate for the rising costs.

How Can A Manufacturer Benefit?
Continue to develop more fuel-efficient equipment with longer wear-life components and help material suppliers and contractors work smarter with less overhead. Shift sales and marketing toward more all-encompassing cost reduction capabilities of the equipment from the standard features and benefits approach. Answer the question: How does a piece of equipment affect your customers' bottom line?

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