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Industry executives think 2008 will be a slower year for the electrical market, but they still see opportunities for growth. Part two of two parts.
Part 1 of "Insider's Outlook" explored the 2008 economy, acquisition climate for distributors and manufacturers (see EW - Dec. 2007, page 42). Part 2 will offer some insight into what industry executives think about the price of copper and other base metals, basic operating costs, the green movement and the legislative picture on Capitol Hill.
PRICE OF COPPER AND OTHER METALS: IMPOSSIBLE TO GUESS
Don't drain your savings for your kids' college education and load up on wire and cable just yet. Even the experts really don't know which way finicky prices for copper will swing in 2008. When asked to forecast copper pricing over the coming year, several of our sources said their crystal balls had gone dark.
"I have felt for a long time that commodity prices were way too high, but they haven't fallen to traditional levels yet," says Bill Elliott, president, Elliott Electric Supply, Nacogdoches, Texas. "Smarter people than me have tried to predict the copper market unsuccessfully. My recommendation is to buy only what you need to service the market and price at replacement cost."
Across the country, Bill Goodwin, president, Griffith Electric Supply, Trenton, N.J., says his customers are very concerned about the price of commodities in general and copper in particular. "It's difficult for them to quote a job that requires a large wire purchase, because no one knows what the price of wire will be next week, let alone six months from now," he says. "In a recent plant visit to...