- Valve prices according to the Producer Price Index were flat again month-over-month in August (flat last month, also). On a year-over-year basis, prices were up 2.8% (also up 2.8% last month).
Key factors that could affect supply or price:
- Manufacturer lead times remain unstable 18 months after demand escalation in early 2018. Supply chain disruptions on castings, forgings and full assemblies out of China have not yet caught up to U.S. demand. Pricing has seen a full 100% pass-through of tariff burden and we expect this will continue if new tariffs are imposed. Barriers to entry have weakened as customers are forced to consider alternatives to incumbent lines due to pricing or availability.