July 26, 2018 – Falcon is experiencing significant price increases in most of the products we supply to our clients, whether imported directly or purchased domestically. The increases are due to a multitude of reasons: continued increased cost of raw materials, rising cost of domestic and international logistics, increased cost of labor, environmental regulations in Asia, and tariff increases. We’ve collected information below regarding each of these topics.
- Rising Material Costs – You may recognize a few of the following companies – Caterpillar, 3M, Kimberly-Clark, Whirlpool, Proctor & Gamble, Ford, Ingersoll Rand, Packaging Corp. of America, Avery Dennison, and Allegion. All of these companies, as well as most companies in today’s market, reported negative impacts to their businesses due to significant raw material and commodity inflation. On top of the steady increases experienced throughout 2017, costs have continued to rise in 2018. We have little reason to expect any near-term softening.
- Various steel costs rose in a range of 10% to 22% since the beginning of 2018.
- Stainless steel is rising primarily due to the increasing cost of nickel that began back in June 2017. Since that time the cost of nickel has increased roughly 55%.
- Chemical commodities have seen increases as much as 36%.
- Crude oil and natural gas used to produce many different commodities have experienced inflation over 50%.
- Aluminum will join this list in the near future due to U.S. tariffs.
When an original equipment manufacturer (OEM) makes the decision to move toward lean manufacturing practices and policies, the very first step is to assess the current standing of the factory.
On March 8, 2018, President Donald Trump signed two presidential proclamations introducing new safeguard tariffs on steel and aluminum of 25% and 10% respectively.
Tariffs will go into effect on any impacted goods entered or withdrawn from warehouse on or after 12:01 am on March 23, 2018 and will be in addition to any duty rate currently applied to the HTS…
There are a number of tools OEMs can use to this end, including five innovations that can prove extremely beneficial in the manufacturing industry: gemba, hoshin kanri, jidoka, kaizen and poka-yoke.
As efficiency is a key factor in successful lean manufacturing efforts, it is imperative that original equipment manufacturers (OEMs) are able to measure the finer points of their equipment and production processes.
Many different external factors can threaten the supply chain both globally and locally. While it can be difficult to predict when the next political fiasco or natural disaster will strike, looking to recent issues can provide insight into what sorts of incidents manufacturers can prepare to face.
The equipment you use to build your products plays an integral role in production, and if anything isn't delivering high-quality results it can drag down your entire operation. Thankfully, there's a formula that can help you measure overall equipment effectiveness (OEE) so you can more easily manage your factory floor.
Labor disputes among union workers at ports along the West Coast have been creating slowed deliveries and port congestion for months, but recent updates show the story may be drawing to a close.
Environmental and internal threats are always present for original equipment manufacturers (OEMs), but there are also steps you can take to mitigate those risks.