Posted on 06/07/2008 2:37:02 PM PDT by vietvet67
Surging oil prices are beginning to cut into the profits of a wide range of American businesses, pushing many to raise prices and maneuver aggressively to offset the rising cost of merchandise made from petroleum.
Airlines, package shippers and car owners are no longer the only ones being squeezed by the ever-mounting price of oil, which shot up almost $11 a barrel on Friday alone, to $138.54, a record.
Companies that make hard goods using raw materials derived from oil, like tires, toiletries, plastic packaging and computer screens, are watching their costs skyrocket, and they find themselves forced into unpleasant choices: Should they raise prices, shift to less costly procedures, cut workers, or all three?
The Goodyear Tire and Rubber Company is trying to adapt. Its raw material of choice now is natural rubber rather than synthetic rubber, made from oil. To sustain profits, it is making more high-end tires for consumers willing to pay upwards of $100 to replace each tire on their cars.
These steps have not been enough, however, particularly now that the cost of natural rubber is also rising sharply, along with that of many other commodities. So Goodyear has raised the prices of its tires by 15 percent in just four months.
“Our strategy is to raise prices and improve the mix to offset the cost of raw materials,” said Keith Price, a Goodyear spokesman. “No one has predicted how long we can continue to do that.”
The sense that many companies may be hitting a wall is palpable. Corporate profits peaked last spring and have shrunk since then, Moody’s Economy.com reports, drawing on Commerce Department data.
(Excerpt) Read more at nytimes.com ...
Raises the cost of cooking with my range!
yeah, so what are they going to do about it?
Time to put the pressure on these liberal skunks and thier GOP lackies, WE WANT DRILLING HERE AND REFINING HERE NOW!!!!! WE THE PEOPLE, WE HAVE THE POWER!
In the Sermon in St. Paul, the Messiah declared that when he is elected, we will end our dependence on foreign oil. Just how are we going to do that, O Anointed One?
Transportation costs of goods have added about $30-45 per week to our grocery bill in the past couple of months.
For the common good of course.
Maybe, “investing in light rail” and other liberal flights of fancy. Devoid of sense, he is. Hussein the Messiah, coming to a Revelation near you. Order your prayer cloth today.
“..yeah, so what are they going to do about it?”
They, Congress, are not going to do a damn thing about it simply because they, Congress, don’t give a damn about you, me or the country. It is called “green” legislation.
Next year, when the damns take over, you’d better sit down with your grandchildren and explain why they won’t have a country nor a future.
“WE THE PEOPLE, WE HAVE THE POWER!”
LMAO, only people with guns have the power these days. Our vote lasts just long enough to get some clown in Congress.
Actually, they are in the position of power. You have a lot of work to do to change that and YELLING ain't gonna be enough to get it done.
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