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"Over time, if you really want to make this big, then raw material costs are going to have to come down," he said.
"And we have seen more stability in our raw materials costs.
This argument is a throwback to the days of 50 percent raw material costs.
"We cannot absorb higher raw material costs indefinitely," he added.
The company said, however, that it had incurred higher raw material costs in the quarter.
Corporations often use them to protect against rises in interest rates or raw material costs.
It also accounts for up to 60 percent of the raw material costs of glass making.
Although the cost is higher than conventional inks, overall raw material costs are lower.
Until energy price increases moderate and raw material costs soften, consumer prices are likely to move up.
They controlled labor costs and raw material costs to give them a competitive advantage.
Examples of manufacturing costs include raw materials costs and charges related workers.
The company said sales volume and market share had been hurt when it tried to raise prices to offset rising raw material costs.
The result will be bigger plants, professionalization of management and control of raw material costs.
Various industries have formulas to express the relationship of raw material costs to sales income from finished products.
The specialty chemical industry, like so many others, is also plagued with currency exchange problems and soaring raw material costs.
Even where there have been price increases, higher raw material costs have not been passed along fully.
Also in the same year, caffeine production is stopped because of high raw materials costs and Coca-Cola now has its own supplies.
The industry faces rising raw material costs before a barrel of beer leaves a brewery's gates.
Investors are concerned that higher energy expenses will increase transportation and raw material costs, hurting corporate profit margins.
Findus has been struggling in the face of higher raw material costs and increased price pressure from retailers.
Manufacturers' raw material costs increased by 1.7% on the month, taking the annual rate to 17.5%.
Still, several recent surveys have found that manufacturing executives expect higher energy and related raw materials costs to crimp profits later this year.
Domestic business benefited from strong volume and low raw material costs, like prices for corn and soybean oil.
Normal operating expenses include energy input, energy removal, raw material costs, labor, etc.
"We think that raw material costs have peaked," Mr. Mahoney said.