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Commodity Shortages ~ What do we have left in inventory? ~ How fast can we replace it?
 I think of oil prices at an unheard of $77 per barrel and expected to top out at $100! The continued escalation of war in the Middle East and demand from India and China will keep oil features high.
The price of Natural Rubber has jumped 20%. This is due not only to more demand, but to real shortages of rubber trees and plantations. The Natural Rubber supply is not likely to see any large production increases soon. It takes seven years for a rubber tree to mature and produce.
The unexpected rise in oil prices have driven the price of Synthetic Rubber to a level that does not make it a good substitute for Natural Rubber.
The days of sitting on your inventory comfortably thinking you can replace it with a simple phone call with delivery in a couple of weeks are over for the time being.
The problems of the world have hit the belting industry hard. Lead times can be as much as 6 months. Most belting prices are increasing by 6% as of August 1st, 2006.
With all the uncertainty and turmoil there is ONE company you can still count on~ Rubber and Plastics. We are working tirelessly with our factories to maintain our inventory, negotiate pricing to keep you competitive in your respective markets and keep your lead times to a minimum.
We strongly advise and encourage you to do your forecasting now for at least the next three to six months. We also want to encourage our Distributors to work with their larger demand accounts to plan for their needs. In this situation, the more pre-planning and awareness going in will help keep your customers satisfied. They need to be made aware of the situation.
You can count on Rubber and Plastics to be the solution. Call us at your earliest convenience to start your inventory planning now. We will work with you.
Remember, rubber prices defy gravity; what goes up does not necessarily come down!
Tech Notes - Method to calculate footage
We've all experienced busy days on the receiving dock. Sometimes there just isn't enough time to lay the belt out or run it thru the slitter in order to verify the actual footage. To compensate for this, there are a few quick calculations that you can do in just a matter of minutes. We'd like to share these with you now.
Calculation:
[(.262 x #of wraps) ("X" in inches)] + "Y" = length of tail in feet
Here is an example:
# of wraps = 17
X in inches = 43
Y in feet = 5.5
[(.262 x 17) (43)] + 5.5 =
[ (4.45 (43) ] + 5.5 =
191.52 + 5.5 = 197.02 ft |
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Rubber & Plastics, Inc. Introduces MaxClimb
This is a 1 ¼” (32 MM) HIGH CHEVRON cleat pattern on overlapping 13” centers. It is designed for steep incline and Heavy Duty applications. MaxClimb can be fabricated with single or double back up reinforcement. The three point contact allows for smooth easy returns.
The cleats are designed to be expandable for a variety of belt widths. You are not limited to only one pattern width. Contact us for patterns design – 18” thru 84”
Comic and Quote for Summer 2006
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