Construction Industry Adapts to Preserve Profit in Face of Rising Copper Prices

Photo of copper wire - saving wire can help an electrician lower costs

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Copper Price Increase

[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]After two years below $2.50/lb, copper prices shot up by 30% in 2017. The price leap is forcing contractors and wholesalers to watch how they buy copper wire for residential and commercial construction projects.[/vc_column_text][vc_empty_space][vc_single_image image=”55139″ img_size=”full”][vc_empty_space][vc_column_text]

Adapting to Preserve Profit

Jeff Hoyt, Supplier Manager at Crescent Electric Supply Company explains how the price of copper affects his business: “With commodities, never speculate or commit to a long-term price. If you’ve committed to a large buy and prices go down, the customer will want a lower price or back out. Very seldom will you win on a deal like that – you’re more likely to get burned than make money.

“It’s best to just face what the market is doing that particular time and don’t commit to a deal more that’s than 30 days out.”

Hoyt says his electrical contractor customers face similar challenges; “Prices rise and fall, but contractors will be pressuring their suppliers for the best price either way. If prices are rising, the contractor might issue a PO early if they think they’re getting a good price. If prices are falling, they will buy as needed and press for the best current-day price. That’s how they will win bids and honor the price commitment to their customer.”[/vc_column_text][vc_empty_space][vc_column_text]

Use Less Wire, Less Conduit

Levven Controls wire-free switches eliminate an average of 700 ft. of copper wire from new residential builds and help to reduce the impact of fluctuating copper prices for both wholesalers and contractors.[/vc_column_text][vc_empty_space height=”48px”][/vc_column][/vc_row][vc_row disable_element=”yes”][vc_column][vc_column_text]

Learn More

[/vc_column_text][vc_empty_space][/vc_column][/vc_row][vc_row disable_element=”yes”][vc_column][vc_column_text]Understand the impact wire-free switching will have on your business.[/vc_column_text][vc_empty_space][vc_row_inner][vc_column_inner width=”1/3″][vc_btn title=”For Distributors »” style=”flat” shape=”square” color=”primary” align=”left” link=”url:%2Fbetter-switch-story-for-distributors%2F||target:%20_blank|”][/vc_column_inner][vc_column_inner width=”1/3″][vc_btn title=”For Trades »” style=”flat” shape=”square” color=”primary” align=”left” link=”url:%2Felectrician-professional-wire-free-switch-benefits%2F||target:%20_blank|”][/vc_column_inner][vc_column_inner width=”1/3″][/vc_column_inner][/vc_row_inner][vc_empty_space height=”48px”][/vc_column][/vc_row]

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