Two-Thirds of Industrial Manufacturers Absorbing Higher Energy Costs
NEW YORK-Two-thirds of U.S. industrial manufacturers are absorbing higher energy costs, rather than passing them through to customers, according to PricewaterhouseCoopers' latest manufacturing barometer. These companies predict that energy costs will rise further over the next 12 months, and the majority is concerned that the higher price of energy will serve as a potential barrier to growth.
Sixty-seven percent of industrial manufacturers surveyed by Pricewaterhouse-Coopers are able to pass along some, very little or none of the increased energy costs. Only 27% are able to pass along all or most of the cost-6% did not report. Overall, 63% anticipate further increases in energy expenditures over the next year. The same number-63%-think rising energy costs could hurt the growth of their companies.