The recent earthquake and resulting tsunami impacting Japan have wreaked havoc on the island nation. Furthermore with the imposing threat of nuclear disaster, all eyes are focused on Japan. Imperial Electronic Assembly works closely with customers to navigate this critical time.
Japan represents 10% to 15% of global electronics demand but 16% to 30% of electronics component supply. OEMs with meaningful cash positions are trying to pull in orders, buying up available component supplies.
Imperial Electronic Assembly, Inc. is taking this opportunity to inform our customers of the expected rise in metal costs so you can plan accordingly.
In the Feb. 3, 2011, Wall Street Journal article "Steel-Price Increases Creep Into Supply Chain" Robert Guy Matthews states "The impact of escalating steel prices in the U.S. is starting to filter through supply chains, with companies that buy and process steel raising their own prices, stockpiling in advance of possible more increases and boosting volume to offset rising costs.
Steelmakers have increased prices six times, for a total increase of 20% to 30%, since November on basic flat-rolled steel, used in everything from cars to toasters, to offset higher input costs of raw materials, such as iron ore and coal. Higher costs for steel, which are expected to continue well into this year, are hitting bottom lines of companies and prompting additional price increases."
The continued expected increase may effect your cost and bottom line when placing orders. Get in touch with your Imperial Electronic representative to discuss your business needs in this economic environment.