material costs

[Ian Marchuk]

We are seeing a considerable decline in material prices generally . I believe the price decline in aluminiumn and steel ,the two materials I usually work in , will continiue to decline for quite some time yet.World production has ramped up steadily these past years to meet what seemed to be an ever increasing demand.
Now that the demand has fallen sharply, there is a huge inventory and capacity.
My question concerns the outlook for the high quality plywoods and epoxy.
Granted, the demand for ply and epoxy has been minimal by comparison. But with declining discretionary income and therefore lower demand , are you seeing a decline in pricing? Do you believe that these materials will decline in price to any significant degree?
This enquiring mind would like to hear your thinking on this.
Best wishes... Ian

[BrianM]

All indicators from those who ACCURATELY predicted the state of our economy for 2008 say we will continue in a deflationary period followed closely by a hyper-inflationary period through 2016. Another good question of "when is the bottom?".

In my view, if you are looking to purchase materials to build and sell a boat, it really doesn't matter when you do it, just do it quickly so your cost/profit ratio isn't hurt.