Coping Strategies — Rising Cost Of Commodities

Keep in mind that for commodities, or raw materials, such as petroleum, silver, aluminum and others, prices are determined by the market, largely based on supply and demand. Manufacturers that use these raw materials rarely make a profit on the commodities themselves; their margin is generated by transforming the raw commodities into something businesses and people use, such as converting aluminum to a litho sheet and, ultimately, to a printing plate. How effectively those manufacturers manage their manufacturing process and its costs determines how much margin is achievable from the end product.