Price increases of higher and higher percentages for raw materials are part of toolmakers' reality. But increases can occur more frequently, as recently happened to Cole Carbide Industries. Also, they can lead toolmakers to more frequently increase their own products' prices. John Cole, executive vice president of toolmaker Cole Carbide Industries Inc., Warren, Mich., appears to be settled into the reality of higher-percentage price increases for raw materials. He recalled that carbide's annual price increase was around 2 percent until about 2004 and has been about 5 percent since then. Given that, he said a price increase of up to 4 percent during a year wasn't a big deal, but it's a different matter when Cole Carbide faces multiple increases in 1 year, as it's facing this year. Cole said his company experienced a 3 percent to 4 percent increase at the start of '08, a 2 percent to 3 percent increase in June and now faces the prospect of another 2 percent to 3 percent increase by year's end.
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