Friday, April 16, 2010

Should you buy parts for your car hauler sooner rather than later?

Inflation is right around the corner... literally. Southeast Asian economies are seeing higher cost inputs for metals and energy. China's annualized GDP grew at almost 12% in the first quarter this year... and their industrial production grew over 18%! In America, anecdotal evidence on the producer side suggests that prices are going to go up in the near to mid-term. And let's not forget fuel-- it's been creeping up all year, and Memorial Day is in six weeks.

I know two major steel chain manufacturing companies that have absorbed 12% increases in steel rod, the main component in welded chain.

A friend of mine who buys steel says his per foot cost on what he buys has gone up twice in the last four months.

Friends overseas say prices are starting to jump.

So I know I'm kind of biased, but I'm thinking that if you have some deferred maintenance on your car carrier... old aluminum cylinders that are puking oil... rusty, worn out cluster chains... bent and cracked ramps... frayed auto tie-down straps.... that sort of thing... you probably should buy sooner rather than later.... before diesel jumps up to $6 a gallon!