[OP]
Member
As most know prices have increased significantly the past year. I have a couple of machines im looking to buy. Should I wait for a price decrease? I have been waiting and since there has been more increases. I'm wondering if I keep waiting if the price will just keep going up and up. I could go a year or so without buying the machines im looking at.
Member
Glad I already have a pretty good shop setup. Would not be wanting to buy much at these prices. The official inflation rate is about 7%, but have heard financial people saying that the real inflation rate is twice that.
Contributor
Yes. I've been in the industry almost 20 years and never seen the rapid succession of prices increase like nowadays. In my opinion, you (consumers) should expect a quarterly price increase for the foreseeable future. We all get iron, steel etc from the same sources and we all use the same shipping companies to get machinery across the water.Originally Posted by Mitch schiffer
I just placed an order for a couple of custom-built machines and the factory came back with a delivery time of 11 months.
Erik
Ex-SCM and Felder rep
[OP]
Member
Do you think prices will ever come back down?
Contributor
No. I have never seen machinery get cheaper. Only more expensive. As I tell my customers: All that happens is that you pay more for the exact same piece of equipment and still have to wait.
Erik
Ex-SCM and Felder rep
Member
The manufacturing cost increases are here to stay. I suppose the shipping cost could retreat some in the future but that is a crapshoot at best. To those that think inflation is 7% are dreaming. Some of the equipment buy and resell has gone up almost 100%
Contributor
Deflation would be a worse sign for the economy. Inflation is how a free market system corrects for supply/demand imbalance. I'd be looking hard for used equipment before I paid some of these prices.
< insert spurious quote here >
Contributor
Professionally speaking, we (anyone in the industry) have been telling this to prospective buyers since shortly after the pandemic started. Some were smart and realized it was not just another sales pitch. Those are the ones who were successful in acquiring machinery and whose businesses are currently doing well. Others are still dug in, thinking it will “go back to the way it was” or whatever. It’s not and may never. Those are the guys who are circling the drain, whether or not they realize it.
Erik
Ex-SCM and Felder rep
Contributor
Agreed, also wood working shops are running flat out due to increased customer demand due to the Covid-19 pandemic.
People have a lot of disposable income due to the pandemic so they’re either renovating or buying hobby machinery, both result in more machinery sales either hobby or commercial……Rod
Contributor
Yup, same in Canada, I can’t imagine prices going down, and sales are greatly increased……Rod.
Member
More price increases sound quite reliable. Decrease? Not expected in my mind.
Contributor
It is pretty unlikely prices will come down soon, or ever. Just being able to get machines in a reasonable time is a challenge now.
[OP]
Member
I am also thinking prices will not come down, but my local dealer seems to think there will be some decrease as machines come back in stock.
Contributor
I can’t see prices decreasing for atleast another year. Most of the manufacturers are still backordered months. You need the supply to catch up before you see prices level out. I find it hard to believe prices would decrease to 2020-2019 levels, ever.
Member
Could prices eventually come down? Yes, but we’re talking 18-24 months, and it’s unlikely.
You would need high inventory levels to generate price discounts and have excess raw materials to move. If people stop buying things and warehouses stack up, then a significant price reduction could happen.
But you would most likely need a major economic recession and other factors to happen.
Most of the huge price increases have come from Taiwan and China. A majority of the machines are made in similar factories. That’s why everyone is raising prices. Grizzly, Jet, Powermatic, Shop Fox, Baleigh. They’re all getting their machines from same suppliers, with their own quality and tolerances built into their price points.
Heavy machinery has its own world to deal with. Raising prices 25-30% in 12-18 months is staggering. A 2600 machine is now $4000.
This isn’t happening in other industries, though. I work in high line German auto sales, and BMW, Mercedes and Audi didn’t raise prices 25%. You had nominal 3-5% increases on MSRP this past year.
Reply With Quote
