A number of recent trends in our commercial systems have created absurd results. Supply train disruptions, inflation, or in many cases corporate greed have distorted pricing in just about every sector of the economy. We are awash in examples of oddly high prices, shrinkflation, or outright price gouging.
In my role of head engineer/maintenance supervisor for a small company I get to see these price increases first hand. I do much of the purchasing, from screws and valves, to large industrial transformers. I have also been on the other side of the fence, in manufacturing, and have a good idea of the real costs of things, what plastic and electronic bits and bobs cost to make at the factory.
We have seen a lot of price increases as of late, and much of that is to be expected… Inflation, increased labor costs, and just plain shortages in a world that is must less stable than a few years ago. But some price increases seem more than a bit out of line with all of that.
Continue reading “Padding the Bottom Line”