MRO Magazine

Swell in metal prices ups cost of motors

New York, NY -- The global swell in prices of raw materials such as steel, copper and aluminum has forced the direc...


Industry

September 21, 2005
By MRO Magazine
MRO Magazine

New York, NY — The global swell in prices of raw materials such as steel, copper and aluminum has forced the direct current (DC) integral horsepower (IHP) motors manufacturers to choose to increase the price of motors in order to offset high production costs.

Many manufacturers feel that such a trend of increased prices will lead to a decline in the sales of motors in the foreseeable future. However, the manufacturers anticipate a downward trend in the prices of the raw materials and maintain that the increase in the price of motors would be for short term.

New analysis from Frost & Sullivan (http://industrialautomation.frost.com), North American DC Integral Horsepower Motors Markets, reveals that revenue in these markets total US$127.8 million in 2004 and projects to reach $139.3 million in 2011.

“Price of raw materials like steel, copper and aluminum have reached their all time highs, increasing the production cost for motor manufacturers,” says Frost & Sullivan research analyst Kishan Bhat. “This is affecting their profit margins. To compensate for their profit loss, the motors manufacturers have opted for price increase of motors.”

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