It’s been an eventful year in manufacturing, and recently, volatility has affected raw material pricing, especially aluminum. At ReNEW Manufacturing Solutions, we’ve had customers come back for quotes on repeat aluminum parts, understandably thinking pricing would be similar to what they paid 12 months ago. Instead, quotes are noticeably higher.
When that happens, we’re always transparent about where the increase is coming from. Our rates for custom machining and fabrication haven’t changed much. The biggest driver is the material itself. In some cases, the all-in aluminum cost we’re seeing from suppliers has doubled over the past year, and that directly affects our pricing.
So why is aluminum costing more, and what can you do about it as a buyer? Here’s what we’re seeing in the market.
Material prices also experienced volatility in the wake of Covid. But because that affected entire supply chains and nearly every aspect of daily life, it was more widely understood. These pricing changes haven’t received the same attention.
Not only that, even as commodity aluminum prices have increased significantly due to supply constraints, they still don’t fully reflect the actual all-in price manufacturers pay. The price charged by suppliers is often also influenced by factors such as tariffs, processing, availability, and more. This gap is one reason customers can be surprised.
There isn’t a single cause behind today’s pricing. Instead, it’s a combination of factors like:
Energy and production costs: Energy prices have increased significantly in areas across the country, affecting energy-intensive processing like refining. That has quickly shown up in the per-pound price of aluminum coming out of the supply chain.
Tariffs and trade pressure: At ReNEW Manufacturing Solutions, we are strong believers in American manufacturing, and we are open to policy steps that can benefit manufacturers and lead to reshoring. But policy changes can affect markets in a variety of ways, and recent tariffs have led to cost increases.
Growing demand: Aluminum remains a critical material in fast-growing sectors like aerospace, automotive, and more. As more industries compete for supply, pricing can become more aggressive.
No one can predict the future, and we can’t say whether aluminum pricing is likely to go down soon or will stay elevated over the months or years ahead. Nor is there any simple, “cheap” solution; we’ve scoured our trusted sourcing network, and the pricing changes are universal.
For customers focused on their bottom line, we emphasize the same manufacturing fundamentals we always do. Some important strategies include:
Internally, we do everything we can to help keep our prices stable and our processes efficient. That includes lean internal practices, efficient scheduling, and transparent collaboration. Above all, you need a partner you can trust. If we see decreases in aluminum pricing, you can be sure that will be reflected in your quote.
Request a quote today and discuss your aluminum parts with us!