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Cost of Raw Materials Continues to Rise

By Associated Press

Birmingham, AL – Alabama and U.S. manufacturers are facing some of the hardest conditions in years as the costs of raw materials continue to rise.

Everyday raw materials such as steel wire, lubricating oil and packaging are getting more expensive.

But it's not just that. There are a bevy of factors causing strain, including: foreign competitors benefiting from strong currencies and high prices for oil, cotton, coal and steel.

Cash-strapped executives are forced to look for ways to cut costs. Often those options include job cuts, decreased spending on new technology and reduced employee benefits.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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