Fabric Buyers Face More Price Increases, Inflation Fears
Raw material price increases have barely made a dent in retail prices ... but many industry sources more increases are on the way, and inflation fears are growing.
January 27, 2011
Higher raw material costs have already arrived for fabric users of all kinds, particularly consumers of cotton. The question everyone is asking is: How much higher can prices go?
Much of the supply chain had been sheltered from the skyrocketing costs of raw materials, even cotton, which is trading at prices not seen since the U.S. Civil War 150 years ago. But higher costs have moved from raw suppliers to spinners and weavers, and “are showing up in vendors’ showrooms in the form of direct charges, fabric grade changes … a small surcharge to our customers,” according to a Jan. 26 article posted on www.furnituretoday.com.
The article goes on to say that the higher raw materials costs would add about $7 to the retailer’s cost of an $899 sofa, which would end up costing end users about $14 more. While that increase isn’t prohibitive, many industry sources fear that the cost increases are only beginning and signal the beginning of a high-inflation period, the article says.