I found out today that one of the chemicals I buy for our company had a recent price increase of $2.00/lb. That's enormous in this industry. Usually the prices go up a 5 cents a lb, or 10, or sometimes even 15 cents a lb. But this time, for this chemical, it was $2.00 per pound!
Shudders of reaction through the whole company. The sales manager needed an immediate cost of goods report for the product we make with this chemical, and we decided to stock up as much as we could afford before the price increase takes effect in 2 weeks. Some of our customers probably will decide to buy cheaper floor sealers now.
It's been scary this year merely because of the shortage of raw materials. Items that used to be delivered in a week or two are now taking a month or two. You just can't get some stuff within the time frame you need it anymore. Everyone is scared to carry much stuff in stock, so it trickles downhill something awful. We've increase our lead times for ordering by double and then triple, and we are still getting bit by slow deliveries.
And now the steady stream of price increases are suddenly magnified out of all previous experience. This can't be a good sign.