Hollywood, Fla. –
A survey conducted in late May by the National Association
of Store Fixture Manufacturers (NASFM) demonstrates that
store fixture manufacturing companies are finding it difficult
to obtain a variety of the raw materials they need to manufacture
products. An additional problem, closely related to the
tight supply, is that the costs of these materials have
increased dramatically.
On March 4, 2004, NASFM reported that many
of its fixture manufacturing members were being hit with
price increases and delivery delays for a variety of types
of steel. Since then, the price and tight supply problems
that first appeared with steel have spread to a number of
other important fixture manufacturing materials. NASFM Executive
Director Klein Merriman said, “Over one third of our
surveyed members reported that steel costs have increased
by more than 50 percent.” Every survey respondent
who uses particleboard in manufacturing said that the price
has increased this year; many report price increases of
more than 25 percent.
Members are also seeing price increases
in a wide variety of other materials, including plywood,
MDF, steel tubing, coiled steel, nickel, aluminum, stainless
steel, hardwoods, glass, plastic laminates, melamine, solid-surface
materials, hardware, plastics, and others.
Companies also reported difficulty in obtaining
a wide variety of materials including particleboard; MDF;
steel wire, sheet, and coil; steel tubing; plywood; lumber;
veneers; and a variety of other items. Shortages are particularly
problematical in this industry where a delay in raw materials
delivery times can ultimately affect store openings.
Combined, rising raw materials prices, shortages,
and longer lead times pose serious threats to store fixture
manufacturers. “We are particularly concerned about
companies with longterm, fixed-price contracts. These companies
are placed in a particularly serious situation and could
have difficulties meeting their obligations,” said
Merriman.
The National Association of Store Fixture
Manufacturers (NASFM) represents about 400 store fixture
manufacturing companies with over 800 plants worldwide.
About 250 suppliers to the industry are also members. NASFM
members produce more than 85 percent of the store fixtures
manufactured in North America.
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