Mastering Material Sourcing: Navigating Pricing and Lead Times

It’s hard to believe, but we’re coming up on the 5-year anniversary of the start of the pandemic. The manufacturing industry was hit hard, with supply chains thrown into disarray, and material pricing and availability becoming volatile. While the headlines about these disruptions have faded, the aftershocks are still felt and many customers might assume prices have stabilized. And while supply levels and pricing have certainly improved, there is still lingering disruption.

Before and After at Peerless Precision

Until recent years, we were able to confidently send quotes that were valid for 30 days. Not only that, when we quoted a repeat part, we’d simply be able to check historical pricing and quickly send it out. If we had purchased material within the past six months, we trusted that its price wouldn’t fluctuate more than 10% either way, and we rarely worried about supply shortages. But all that has changed.

Today, pricing and lead time are difficult to predict across all materials. Exotic materials, unsurprisingly, are particularly challenging and can have long lead times. But even common materials like aluminum have undergone significant price spikes and seen major volatility over the past several years.

Now, if we haven’t ordered a material within the past month, we’ll re-quote the price. When we send quotes to customers, they’re typically only valid from 1-5 business days. If we don’t receive a quick response from our customers, that pricing could very well change and the material may no longer be available.

material pricing

Collaborating for Improved Pricing

To ensure you get the best value and meet your project deadlines, collaboration is key. In today’s challenging material sourcing landscape, open communication and a strategic approach can make all the difference. Here’s how we can work together to navigate this new reality:

  1. Talk to us about timing. Pricing and lead time can sometimes be correlated – if you are ready to pay a higher price, you can find a better lead time. Similarly, a customer who is willing to wait several months may be able to find much better pricing. This is why we always try to take a collaborative approach and talk to you about the bigger picture of your project to determine the best solution.
  2. Share Your Material Sources. If you have a material supplier, let us know. Some customers have contracts or purchasing agreements with material houses or mills, giving them access to better pricing. If you can provide the material, we won’t bill you for it, and it could improve both your pricing and lead times.
  3. Communicate As Early As Possible. We’re currently telling customers: if you need something in three months, give us the purchase order five months before you need it. This isn’t a hard and fast rule, but it’s a helpful rule of thumb in the current material landscape. Many aluminum alloys are becoming harder to obtain, while specialized aerospace machining materials, like Greek Ascoloy, can take months. Beyond being sure that you’re selecting the right material for your parts, the best thing you can do is give us plenty of advance notice. And if we receive the material well before your part is due, we’re happy to store it on our shelves.

Why You Can Trust Our MA Machine Shop

At Peerless Precision, honesty and transparency are core to our values. We believe in telling it like it is. While we might not always say what you want to hear, you can trust that it’s the truth.

In challenging times like these, honesty is more important than ever. Customers always want to be sure they’re getting the best price, so we are transparent with pricing. If customers provide us with sources, we show them the quotes we received – which can vary widely in pricing and lead time.

Above all, it’s vital to talk to us about your project as soon as possible. The sooner we start discussing your project, the better we can manage lead times and ensure all aspects run smoothly. While the complexities of today’s market may mean adjusting timelines, our focus remains on delivering quality results, on time, every time.

Contact us today to request a quote and let’s get your project moving.

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We Supply Parts To:

  • Curtis Wright
  • EATON
  • FLIR
  • Kaman
  • Curtis Wright
  • EATON
  • FLIR
  • Kaman