Natural Gas Price Increases Affect Costs of Popular Faux Wood Blinds
The rising cost of natural gas has affected prices of blinds and other window coverings. A report, with suggestions from Just
Houston, TX (PRWEB) March 26, 2006 -- The rising cost of natural gas has affected wallets in more ways than one. Destruction from Hurricanes Katrina and Rita has continued to cause enormous shortages in key polymer resins, devastating the main ingredient supply for faux wood window blinds.
At one point, 85% of North American styrene capacity was lost. Styrene is used to make polystyrene, polyester resins, synthetic rubber, and a host of other products. It is also a key ingredient in faux wood products, like the popular Hunter Douglas EverWood blind.
Uncertainty remains moving forward due to a global natural gas shortage. Recent spot price increases at nearly all market locations in the contiguous U.S. indicate a break from the mostly downward trend since mid December. The return of cold temperatures and escalating crude oil prices has likely contributed to the strength in natural gas prices. Overall, the price increases ranged mostly between 34 and 72 cents.
Raw material costs have doubled, and manufacturers cannot absorb all the expenditure. They have been forced to disregard supply agreements and prices, in turn allocating higher costs. Prices were raised roughly 10% starting at the beginning of February and are now reflected in nearly every supplier’s pricing.
This increase has now removed some of the appeal for faux wood blinds, which give consumers the look of wood without the high price-tag. They are also an ideal product because they withstand moisture and humidity, and are easy to clean and care for. Just
“Faux Wood blinds represent nearly 50% of our revenue, so we were set up to take a big hit if we were forced to increase our prices,” says Chris Blair, Customer Service Manager at Just