Material cost's should be uniform. What will vary is the price the fab pays
for their supplies. They vary from shop to shop, depending on size. Leverage
on cost will be best on volume, smaller shops traditionally pay more for
materials

Regards,

Colin McVean

Circuit Manufacture Ltd
Unit 9-12
Rowleys Green Lane
Longford
Coventry
CV6 6AG

Tel: 02476 666168
Fax: 02476 637089
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-----Original Message-----
From: TechNet [mailto:[log in to unmask]]On Behalf Of Dale Ritzen
Sent: 28 May 2004 13:11
To: [log in to unmask]
Subject: Re: [TN] Board Price Increases


35% sounds high to me.

I have recently incurred a 10% price increase out of Taiwan due to laminate
pricing pressures.

It is my understanding that pcb production activity is down from the 1st
quarter.  Also, bookings are down so the trend appears to be continuing.

But there appears to be a shortage in raw materials.   The laminates
suppliers have been pressing the PCB fabs for raw material cost increases
for the last several months.

But 35% is high.  Sounds to me like someone is taking the opportunity to
either pad their profit margin and/or correct an aggressive price target
that was provided in the past.   I would recommend shopping the board(s).
Material costs should be uniform for all PCB Fabs....so you could use
competitive price quotes as leverage if you are being leveraged by your
current supplier.

Mike Light
Purchasing Mgr
AMS/Avant Technology

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