Submitted by IndustryTabs on Wed, 10/05/2011 - 9:53am.
I'm hearing that GE has a 6% increase planned for January 2012.Has any other manufacturer announced a similar increase? only a matter of time I suspect.
Submitted by Appliance Stallion on Thu, 10/06/2011 - 12:51pm.
I was in the appliance industry for over 20 years and now work in another industry . The industry is very similar in terms of components materials ,motors , blowers , etc.Having bottom line resoponsibility we very closely watch the markets and commodities.Those commodities continue to rise and our industry is passing along increases in the 10% or greater range. That would include multiple smaller increases as opposed to one big one. The customers have expected it. I have met with numerous commodity suppliers and mills. As it stands these higher prices will continue and my guess is you will experience increases probably early in the new year by most everyone.Some of these increases in raw materials are not sustainable for manufacturers to maintain acceptable margins. The same with motors , people are experiencing multiple increases over a very short period of time. Our insurance premiums for 2012 has a double digit increase in it already. You will probably see less show spending but certainly some of these organizations cannot absorb the raw material increases without price adjustments if they want to maintain the margins they have become accustomed to and perhaps rely on.The alternative would be more layoffs and less spending for marketing. That certainly will not help the economy.
Submitted by joboxes on Wed, 10/05/2011 - 10:03pm.
I can confirm GE. Got the sheets 2 days ago. Sub is going up 5-8% on november 1st. Viking hasn't announced and Thermador is by way of replacing the bulk of their "2010" product line with more expensive "2012" product line.
Of course our beloved Fed Chairman continues to stick his head in the sand and hold interest rates at near zero, leaving seniors without a safe harbor where they can get a decent rate of return on a fixed income investment.
Submitted by Appliance Stallion on Thu, 10/06/2011 - 4:34pm.
that raising interest rates would cause inflation ? I suspect that may have an adverse effect on the economy.How about Treasury bonds for now ? Raising rates in the past has caused both inflation and recession I think.
Actually, it's normally the other way around. As inflation occurs interest rates go up; except now, because they've been artificially held in check.
Inflation is normally caused by one of two things; if supply outstrips demand (which isn't happening now), prices will increase. Or, if material costs go up (which is happening now) prices will increase. Of course, it could be argued that higher interest rates can be a factor in increasing material costs, but that's a circular argument and is not what is happening now. GE and Electrolux aren't raising their prices because of higher interest rates. Interest is at all-time lows.
The Fed is using CPI as a measure of Inflation to convince us that inflation is in check. But the CPI is simply an index using prices in 1982 equaling 100 and comparing subsequent years to that benchmark. On that measure something that cost $1.00 in 1982 would cost $220.22 in January '11 and $226.55 in August '11. Does't sound like prices have gone up much this year. But, comparing the 1.63% rate of inflation in January '11 versus the rate of 3.77% rate in August '11 paints an entirely different picture. Inflation IS happening now and we (the Fed) are not allowing interest to keep up with it.
For a good analysis of this check out www.inflationdata.com. All of the charts are available there for your viewing pleasure.
I meant to say "if demand outstrips supply". Obviously, if supply outstrips demand, prices will drop. But, the post was lost amongst a bunch of biblical quotes anyway, so apparently no one noticed. For those of you who did notice and were too kind to comment, I apologize for my dyslexic typing.
Submitted by Appliance Stallion on Fri, 10/07/2011 - 12:52pm.
I understood what you meant. Generally interest rates are raised to level off or cool a hot economy and curtail inflation. Friedman did that in 2000 and that started the slow down among other things that occurred. Higher interest rates actually would indicate a very strong currency valuation for the US.However corporations typically have higher profits when interest rates are low. That seems crazy but in most cases is true. Go figure. I can tell you that most high level investors I know consider inflation right around the corner.I hope they are wrong.
Industry Tabs....
I was in the appliance industry for over 20 years and now work in another industry . The industry is very similar in terms of components materials ,motors , blowers , etc.Having bottom line resoponsibility we very closely watch the markets and commodities.Those commodities continue to rise and our industry is passing along increases in the 10% or greater range. That would include multiple smaller increases as opposed to one big one. The customers have expected it. I have met with numerous commodity suppliers and mills. As it stands these higher prices will continue and my guess is you will experience increases probably early in the new year by most everyone.Some of these increases in raw materials are not sustainable for manufacturers to maintain acceptable margins. The same with motors , people are experiencing multiple increases over a very short period of time. Our insurance premiums for 2012 has a double digit increase in it already. You will probably see less show spending but certainly some of these organizations cannot absorb the raw material increases without price adjustments if they want to maintain the margins they have become accustomed to and perhaps rely on.The alternative would be more layoffs and less spending for marketing. That certainly will not help the economy.
I can confirm GE. Got the
I can confirm GE. Got the sheets 2 days ago. Sub is going up 5-8% on november 1st. Viking hasn't announced and Thermador is by way of replacing the bulk of their "2010" product line with more expensive "2012" product line.
Mr. Bernacke
Of course our beloved Fed Chairman continues to stick his head in the sand and hold interest rates at near zero, leaving seniors without a safe harbor where they can get a decent rate of return on a fixed income investment.
Cohiba.....Don't You Think.....
that raising interest rates would cause inflation ? I suspect that may have an adverse effect on the economy.How about Treasury bonds for now ? Raising rates in the past has caused both inflation and recession I think.
Inflation
Actually, it's normally the other way around. As inflation occurs interest rates go up; except now, because they've been artificially held in check.
Inflation is normally caused by one of two things; if supply outstrips demand (which isn't happening now), prices will increase. Or, if material costs go up (which is happening now) prices will increase. Of course, it could be argued that higher interest rates can be a factor in increasing material costs, but that's a circular argument and is not what is happening now. GE and Electrolux aren't raising their prices because of higher interest rates. Interest is at all-time lows.
The Fed is using CPI as a measure of Inflation to convince us that inflation is in check. But the CPI is simply an index using prices in 1982 equaling 100 and comparing subsequent years to that benchmark. On that measure something that cost $1.00 in 1982 would cost $220.22 in January '11 and $226.55 in August '11. Does't sound like prices have gone up much this year. But, comparing the 1.63% rate of inflation in January '11 versus the rate of 3.77% rate in August '11 paints an entirely different picture. Inflation IS happening now and we (the Fed) are not allowing interest to keep up with it.
For a good analysis of this check out www.inflationdata.com. All of the charts are available there for your viewing pleasure.
Ooops
I meant to say "if demand outstrips supply". Obviously, if supply outstrips demand, prices will drop. But, the post was lost amongst a bunch of biblical quotes anyway, so apparently no one noticed. For those of you who did notice and were too kind to comment, I apologize for my dyslexic typing.
Cohiba ...Part 2
I understood what you meant. Generally interest rates are raised to level off or cool a hot economy and curtail inflation. Friedman did that in 2000 and that started the slow down among other things that occurred. Higher interest rates actually would indicate a very strong currency valuation for the US.However corporations typically have higher profits when interest rates are low. That seems crazy but in most cases is true. Go figure. I can tell you that most high level investors I know consider inflation right around the corner.I hope they are wrong.