Core Producer Price Index (PPI) measures average price movement established by US domestic producers for goods and services sold both domestically and internationally. US Labor Department says PPI for November (2021) hit 11-year high. Core PPI advanced 6.9%, the largest spike since mid 2014.
Manufacturers are facing higher costs, and that cost is passed on to consumers.
Below, the twelve-month percent changes in selected PPI final demand price indexes, not seasonally adjusted. Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor.
US Labor Department says US is on fastest pace of inflation since June 1982. Meanwhile, a major factor in the increase in prices for intermediate demand for some goods was the index for industrial chemicals, which rose 2.5 percent in November. Prices for utility natural gas, gasoline, electric power, fabricated structural metal products, and hot rolled steel sheet and strip also moved higher.
Stay competitive, expand margins
Electronics manufacturers sourcing contract EMS manufacturing services can lower manufacturing total landed product costs and expand margins using finely-tuned EMS manufacturing cost models. Once you understand internal EMS factory costs you can negotiate better fees paid for EMS manufacturing services. You pay less for your total landed costs, allowing you to offer more competitive pricing to your customers, while saving, on average, 5% to 15%+ of your annual spend for fees for EMS manufacturing services.
Join us for our next EMS costing seminar and lab online and dive into EMS manufacturing costs: total landed cost pricing, comparing EMS manufacturing quotes, cost reductions, contract negotiations, and more.
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