The “Raw Material” Argument is Rubbing Us Raw

If you read my post yesterday, then perhaps you noted a bit of optimism.  Hoping that a strong downturn in the cost of the raw materials used to make tape products would ease price pressures seemed like a bright light at the end of a year long tunnel.  As a distributor of cloth tapes like gaffers tape and lots of vinyl tapes, we have been caught in the middle between manufacturers and converters of tape products and our customers.  It is not a comfortable place to be.

Apparently, major tape manufacturers prefer to live in the dark.  Here are four letters from some of the nation’s biggest tape manufacturers announcing pending price increases.  We received the latest one today.

These manufacturers seem capable of only looking backward.  They give no weight to the current direction that raw materials are moving and seem afraid to use the pricing pressure (based on futures markets) that they could collectively bring to the marketplace when trying to stand up to the raw materials producers.

I am particularly struck by the “tag” line at the bottom of the letter from Shurtape.

Hold Strong” is what it says.

Apparently, that doesn’t apply to pricing.

Here are the letters




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