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Who Doesn’t Like Lower Resin Prices?

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It depends on how you look at the figures on your business.


You probably have noticed that materials prices have nosedived lately, and most of you probably aren't complaining about a lower cost of doing business. Some of you may even see it as insurance against imports of processed goods from overseas.


But this week I got a different take on the situation from the CEO of one large molder, who said, “Resin prices have been dropping so much that my billings have gone down $5 million in just the last month!” He didn’t really mean it as a complaint—not exactly. He explained that his firm passes along resin price changes to its customers. So, instead of pocketing the resin cost savings, he shares it with customers. It doesn’t really hurt his bottom line, and probably makes for good customer relations. But, he noted, “Who wants to see their corporate revenues falling?”


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