Material cost and exchange rates are holding and pricing from the typical inflationary factors are a non-issue. The pricing put into the marketplace thus far this year is covering that side of the cost to produce.
No surprise is the continuation of the wait-and-see impact to any tariff increases beyond the current structure. Check valves have been impacted thus far and most have put through supplemental increases to cover that additional cost. The third round of tariff discussions in Washington will cover almost all the industry’s valve types. Depending on amount of tariff increases, the countries it is imposed against will have to lead to a wave of increases from many producers. In the meantime one can expect shorter protection periods on jobs and contracts to be certain the increases from tariffs can be recovered. The lead times continue to stretch into 2019 for forged and cast product as well as high-performance.