Steel Surcharges, Here we go again!!

[sweettractors]

We are taking hits on Fuel Surcharges and now we are beginning to see steel surcharges come into play. We will absorb as much of these extra charges we possibly can, however, at some point down the road, These surcharges will affect all of us. I hope we can start drilling soon. Our economy needs this $4-$5 gas, like I need another hole in my head. Here is a email I just got from one of our vendors, Buhler/Farmking Industries. Ken Sweet

 

[dcyrilc]

:thumbdown::confused2::confused3: What can you do, but to accept it?:smiley_aafz:

 

[Luremaker]

My dealer said Kubota Canada raised implement prices 3% this week. Those surcharges may be short lived if the commodity markets continue falling.

Commodity bulls stampede for the exit - The Globe and Mail

 

[sweettractors]

:thumbdown::confused2::confused3: What can you do, but to accept it?:smiley_aafz:

Put this new "Green" energy crap on the back burner and harvest our oil, gas and coal. No matter where it is. Ken Sweet

 

[newbury]

Yes! It's better to sop up the oil off the Gulf coast beaches than do it slowly and responsibly.
If we don't "harvest" it now it will be there tomorrow.
Please don't turn the attachments forum into another political diatribe.

/edit - It's to bad prices are going up, but the US is not the only consumer nation in the world.

 

[ShenandoahJoe]

Ken, any idea why things like snowblowers, etc, aren't subject to the surcharge? Last I looked, those were made of the same raw materials.

 

[300UGUY]

My dealer said Kubota Canada raised implement prices 3% this week. Those surcharges may be short lived if the commodity markets continue falling.

Commodity bulls stampede for the exit - The Globe and Mail

I wouldn't bet on that. Price increases have a way of being sticky.

 

[dcyrilc]

Ken, any idea why things like snowblowers, etc, aren't subject to the surcharge? Last I looked, those were made of the same raw materials.

My guess is that it has something to do with quantities of stock on hand vs expected sales over the next several months. Snow blowers are seasonal and probably won't run production again until fall so anything sold in the near future was made before the surcharge went into effect.

 

[weldingisfun]

:thumbdown::confused2::confused3: What can you do, but to accept it?:smiley_aafz:

You can VOTE!

 

[Heavy Metal Doctor]

We've been lucky that our biggest vendor has only made increases each year, while some of the smaller manufacturers seem to send out those surcharge letters every few months. Our most common stainless steel option can't even be priced until the order is placed as it fluctuates too much daily.