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Prices going up

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I heard from my local equipment dealer that prices are going up 10-20% at the end of September.  Kreg and Powermatic where two of the brands that they mentioned.  So if you are considering getting something this winter, act now.  Most of the increases seem to be due to radically higher inbound shipping charges.

Everything is going up including natural gas and electricity.

 

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Look at the automotive industry.  Do the dealers in your area have any new inventory?  Here the lots are empty except for used vehicles.  These companies have subcontracted parts manufacturing out (mostly to Asia) and as soon as one weak link breaks, the production stops.  

These companies deserve it, and I hope they learn from it.  I feel bad for the sales people.  But we'll all pay the price for it.

1 hour ago, JimM said:

Look at the automotive industry.  Do the dealers in your area have any new inventory?  Here the lots are empty except for used vehicles.  These companies have subcontracted parts manufacturing out (mostly to Asia) and as soon as one weak link breaks, the production stops.  

These companies deserve it, and I hope they learn from it.  I feel bad for the sales people.  But we'll all pay the price for it.

Auto production problem is supply of computer chips which also affects many other industries as well.

  • Author
2 hours ago, JimM said:

Look at the automotive industry.  Do the dealers in your area have any new inventory?  Here the lots are empty except for used vehicles.  These companies have subcontracted parts manufacturing out (mostly to Asia) and as soon as one weak link breaks, the production stops.  

These companies deserve it, and I hope they learn from it.  I feel bad for the sales people.  But we'll all pay the price for it.

I heard that Toyota made an exception from their "Lean Manufacturing/Just in Time" on computer chips after the Tsunami there a few years ago.  So they stockpiled an inventory of chips.

If China developed covid to disrupt the world economy, they succeeded. Although, most of the disruptions can be attributed to political hysteria rather than the virus. 

14 hours ago, Gerald said:

I hope they learn from it. 

Wanna bet???

2 hours ago, Gene Howe said:

the disruptions can be attributed to political hysteria rather than the virus.

Sometime I feel like a ping-pong ball---getting paddled left & right with no end in sight until someone slips and then I'm on the floor and someone else is celebrating. Then the sweeper comes by and throws me in the trash.

South Korea is the leading chip manufacturer and are investing billions in new plants to keep pace with the need.  60 Minutes had a very good story on it a few weeks ago.

 

 

TSMC is about to build another plant in Texas.  They are the leading chip maker in the world.  There is one company left in the US that makes about 12 % of the worlds chips.  Not enough.  This was all farmed out to China who can't get and keep enough qualified employees to make these things.  So, watch TSMC in the tech stocks start climbing.  Sad that we have to have someone from another country to come and build what we originally designed and built, then shared all the technology with them and they ran with it.  TSMC is in Taiwan.  The little island is now in fear of China taking over and China is looking at their chip manufacturing with a gleam in the eye.  

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