Fiberglass/resin prices?

[frank_a]

Do any of you good folk have a handle on forecast prices for the materials necessary to produce eggs? I was told by a reputable source this a.m. that steep price increases in resin for next year are expected. That would of course make eggs more costly to produce, and eventually make used ones more valuable.

Basically, I wonder if a forecast for steep price increases in these materials is true?

Thanks!

Frank

[stevebaz]

Resin and glass prices have been pretty much stable at 2 to 2.5% price increase every year even during the recession. production of resin and glass is very energy dependant so if energy shoots through the roof then prices have to follow. If eggs are using TIO2 for the white pigment there have been substantial rise in price for raw material due to production shortage but there is still only about 2 % or so in the resin mix of the gelcoat. The real price increases are in Labor costs and health care which are going through the roof and of course taxes and fees being added everywhere they can. With production picking up again I suspect steel and lumber will be the biggest price increases. Traditionally these items try to make up ground lost during the recession which was lost sales due to construction depression.
I purchase 50,000 lbs each of both resins and glass fiber fabrics a year for my employer making composites not related to the RV industry. Smaller consumers may be seeing larger increases.

[frank_a]

That is an excellent and detailed reply Steve, thanks for that. I believe as you do that labor and labor-related costs are what are going up, particularly for skilled jobs, and if anything leads to price increases for eggs, it is primarily that.

Frank