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Related Products & Services
Commodity, Pricing & Cost Intelligence: IHS Pricing and Purchasing
Understand your suppliers' cost structures, negotiate prices effectively and strategically time purchases with commodity price forecasts, supplier cost models and buying recommendations.
Commodity Price Forecasts & Supply Chain Cost Benchmarking
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IHS Pricing & Purchasing provides timely, accurate price and cost analysis including ten-year forecasts and historical records for thousands of commodity prices and wages around the globe. With greater understanding of suppliers' cost structures and market dynamics, clients can:
- Evaluate price quotes and enhance negotiating power
- Build composite cost indexes
- Identify competitive suppliers
- Strategically time purchases
- Determine project validity, risks and long-term costs
- Better manage supplier relationships
- Quantify and benchmark procurement costs by business unit or product line
Who uses IHS Pricing & Purchasing? How? Aerospace and defense firms, and government agencies Determine escalation clauses in long-term pricing contracts Procurement professionals Identify raw materials purchase timing, understand supplier cost structure and better negotiate supplier quotes
Pricing & Purchasing for Corporations brochure
Pricing & Purchasing for Automotive industryUpstream energy professionals Determine project validity
Upstream Cost & Procurement Solution brochure
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Concept Coverage
Key commodity areas include:
- Wages and benefits
- Energy products
- Chemicals
- Electronic components
- Building materials
- Nonferrous metals
- Ferrous metals
- Industrial machinery and equipment
- Paper and packaging
- Transportation
- Contact IHS to obtain complete forecast listing
Special Reports:
Download the latest forecasts:
Frequency and Horizon:
- Ten-year forecast horizon
- Quarterly data
- Monthly forecast updates for key spot prices and quarterly forecast updates for all others
- Historical data vary and are available back to the early 1900s in some cases
Historic Data Sources:
- BLS
- ONS
- DARES
- Eurostat
- Stats Canada
- Statistiches Bundesamt
- INEGI
- SBB
- Australian Bureau of Statistics
- NBS
- Instituto Nazionale di Statistica
- Bank of Japan
- Nihon Keizai Shimbunsha
- Ministry of Commerce, India
- National Statistical Office, Thailand
Related Historical Data Available for Purchase:
- Commodity price indices
- Competitiveness indicator
- Industrial production: total, manufacturing, mining, services
- Labor market: compensation rates, wages, salaries, employment figures by economic activity, costs and productivity by sector
- National accounts, income approach
- Population statistics by demographics and age
- Price indices: consumer, producer and wholesale by sector
- Wholesale trade and retail sales
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Publications
Commodity Price Watch
Receive monthly updated price changes and key cost driver analysisCost Planner
Access three- and ten-year forecasts for over 4000 global prices and wages, along with energy, labor, steel, nonferrous metal, chemical and other industry reviewsCapital Cost Planner
Obtain long-term core commodity market views with demand, supply, prices and capital expense capacity
Data-Insight SoftwareThe Cost Analyzer
Perform customized cost analysis, individual commodity supply chain evaluation and supplier price assessmentsThe Purchasing Analyzer
Analyze industry-specific margins and input costs for labor, materials and energy by commodity
Data Tables (quarterly updates)- Short-term costs
- International costs
- European forecasts
- Capital costs
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Obtain insight directly from leading economists and industry analysts. Mark your calendars for our virtual and regional events today.
Webcast
IHS Material Price Outlook: A 2014 Buyer’s Guide
Join this 1-hour webcast to obtain price forecasts and cost insight directly from leading economists and industry analysts to derive your 2014 purchasing strategy, minimize material costs and achieve a competitive advantage. Learn more
Impacts of Weather and Climate Change on Global Agriculture Markets
IHS is presenting the Impacts of Weather and Climate Change on Global Agriculture Markets webcast on February 20, 2014. Learn more
IHS Steel Buyer's Guide
It is a buyer's market. No matter which area you buy from, fundamentals favor buyers. There are significant savings for those willing to import, and if buyers can tolerate slower delivery times, there are bargains to be had by shopping around. Learn more
Global Construction Outlook: Wage Growth, Labor Shortages and Implications
According to a 2012 industry survey, 34 percent of employers reported difficulty filling jobs, up from 30 percent of employers in 2009. Understanding the drivers of wage growth can allow cost estimators to identify potential skill shortages and plan accordingly. Join this 1-hour webcast where IHS Economists will analyze the current labor market and provide insights to help you understand current and future pressures. Learn more
The Great North American Drought: Industry Impacts One Year Later
Scientists and historians have called the 2012–13 dry spell, which caused more than 60% of the continental United States to experience drought conditions, the worst drought since the 1950s. The 2012-2013 drought will have a lasting impact on industry, causing a serious ripple effect on food availability, regional stability, and industry sectors around the globe. Join this one-hour webcast, where IHS economists will analyze the constrained agriculture supply and the lasting impacts from the drought. Learn more
Resilient Supply Chains: How to Dynamically Manage Risk, Opportunity, and Business Continuity
Supply chain disruptions are occurring at an alarming rate. An unrelenting barrage of man-made risk and natural disasters has made a profound and highly-visible impact on many global operations. Despite immediate attention on short term recovery, companies affected experience sustained, long-term impacts to share price, shareholder value, and operating performance. Learn more
Quantifying Sourcing Risk: Building Commodity Risk Ratings
Do you know the drivers of commodity volatility? Do you know the impact of conflict minerals regulations on supply and demand? Join IHS for this 1-hour webcast where experts will discuss quantifying supply chain risk with specific focus on commodity risk, country risk, and compliance risk. They will outline the importance of having supply chain intelligence to address your global sourcing questions. Learn more
Improve your Negotiating Position & Achieve Cost Savings with Supplier Cost Insight
When negotiating price, there’s no better position you can be in than one of an informed buyer with a complete understanding of your suppliers cost structures. Learn how to take advantage of falling prices in key cost components to improve your negotiating position. Learn more
When Will China Lose its Low-Cost Edge
For years, low labor rates have been the primary cost advantage enjoyed by Chinese manufacturers; however, wage rates in China are growing at an accelerated rate and IHS predicts that China will lose its low-cost edge for some products in the near-term. Join IHS Senior Industry Economist, Laura Hodges, for a 1-hour webcast to obtain cost insights and answers to your global sourcing questions. Learn more
Commodities Through 2013 - Buying Opportunity or Buyer Beware
By predicting and capitalizing upon price fluctuations, and minimizing supplier and material costs, organizations can thrive amidst global economic uncertainty and achieve a competitive advantage. Join this 1-hour webcast with an industry leading economist who will assess purchasing and sourcing risks across key sectors and provide insight to help you minimize risk for key commodities. Learn more
A&D Commodity Futures: IHS Forecasts Aluminium and Titanium Prices
During this webcast, we will discuss the IHS Pricing and Purchasing Service’s First Quarter 2013 Outlook with a focus on two metals key for the Aerospace & Defense industry: aluminium and titanium. Learn more
0Speaking Engagements
Speaking Engagements 2014
- Feb 20, 2014 Impacts of Weather and Climate Change on Global Agriculture Markets
- Feb 28, 2014 ProcureCon Asia – Singapore
- March 7, 2014 Procurement Executives Group – Phoenix, AZ
- March 28, 2014 IHS CERAWeek – Houston, TX
- April 27-29, 2014 IHS Forum Middle East: Innovation and Diversification: Promoting Sustainable Growth in the Middle East – Dubai
- April 29, 2014 Polypropylene Market Update – San Diego, CA
- May 6, 2014 Institute for Supply Management
- May 7, 2014 OESM Automotive Conference
- May 12, 2014 INDEX Piedras Negras Annual conference
- May 12-14, 2014 IHS Forum Europe: Europe’s Global Competitiveness: Opportunities and Pathways – Berlin
- June 10-12, 2014 IHS Forum Asia: Pathways to Growth and Economic Security – Singapore
- Sep 4, 2014 Steel Summit – Atlanta, GA
- Sep 16, 2014 IHS Innovation Day – Paris
- Nov 11-12, 2014 Pricing & Purchasing Summit – Washington DC
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Custom Audit
The US Department of Defense Saves $520.6 million
Challenge
The US Department of Defense (DoD) faced substantial payments to a private aircraft manufacturer due to volatility in the employment cost index (ECI) that governed the DoD’s long-term contracts with that manufacturer. The manufacturer had reported $8 billion in pension contributions to the US Bureau of Labor Statistics (BLS).While the pension costs the manufacturer actually incurred amounted to only $1.1 billion (the remaining $6.9 billion was a pre-payment credit), the BLS counted the entire $8 billion contribution in its ECI, artificially inflating the manufacturer’s employment costs and, therefore, the price charged to the DoD for various aircraft.
Solution
With IHS assistance, the DoD estimated the true changes to the manufacturer’s worker compensation and calculated new compensation projections. The DoD used these new projections to recalculate contract adjustments, avoiding significant costs that would have been incurred under the BLS employer cost index.Results
IHS played a vital role in ensuring proper contract adjustments that saved the DoD and US taxpayers $520.6 million.
-1Timing When to Buy
Building Materials Manufacturer Saves 10-15% on Aluminum
Challenge
A European building materials manufacturer wanted to secure an optimal aluminum contract price.Solution
IHS expert John Mothersole accurately predicted a significant unwinding of aluminum prices.Results
Armed with this forecast, the client floated aluminum purchases on the spot market for a few months before locking in a contract price at a 10-15% lower rate.Major Oil & Gas Company Saves $10 Million on Steel Buy
Challenge
A major oil and gas company was concerned about rapidly rising steel prices and was considering locking in prices for the following year given supplier suggestions that future price hikes were imminent.Solution
We advised the client not to enter into a contract with locked-in prices based on our estimates that steel prices would spike temporarily, then return to previous levels in the near future.Results
The client saved over US$10 million by heeding our recommendations and delaying its purchase.Leading Shipping Company Saves $1 Million on Polyethylene
Challenge
In fall 2003, a leading shipping company wanted to time the purchase of 10 million pounds of polyethylene (PE) to take advantage of the lowest price projected for the following year.Solution
IHS petrochemical analyst Frantz Price advised the client to make the entire purchase immediately based on his projection that PE prices would surge due to growing demand, tighter supply and soaring energy input costs.Results
The client followed Price’s advice. PE prices skyrocketed throughout the following year, and the client saved his organization US$1 million on its PE buy.Large Steel Producer Invests Successfully in Central Europe
Challenge
A large steel producer needed a long-term supply and demand outlook for steel in the Czech Republic, Hungary, Poland and Slovakia.Solution
IHS provided detailed supply outlooks for steel material prices and availability, comparing regional and global data. IHS also examined internal and external steel demand based on economic growth, manufacturing health, new construction needs, export potential and foreign competition.Results
The report provided an objective basis for the client’s long-term investment plans. The client reconciled the study with internal projections and made multiple successful investments in Central Europe.Steel Forecast Saves Company Millions
Challenge
After a profitable 2008, a large steelmaker's production group was setting the following year’s budget and anticipated continued high output and profits.Solution
IHS examined and gave 2009 projections for each major end-market. Our analysts then translated the outlook into ramifications for steel by product type. Their uniformly gloomy outlook (even before Lehman Brothers collapsed) signaled the need to curtail production amidst falling prices.Results
Members acknowledge that while the outlook was tough to hear, it forced them to rethink their plans, enabling them to avoid excess inventories and save millions.
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Global Electronics Company Saves $60 Million with Cost Benchmarking
Challenge
A global electronics company needed a formal cost-benchmarking model to track and forecast material cost inflation by commodity, equipment component and service.Solution
IHS developed the model in three stages. In the first stage, IHS and the company's purchasing department identified over 300 "buys" and assigned each one an escalation measure. Next, IHS constructed forecasting models for each assigned price measure. Finally, IHS formulated the model to compare historical and forecast escalation measures against the company's own data. This provided an objective view of the purchasing department's cost inflation management.Results
In 1997 alone, the client estimated US$60 million in cost savings in materials procurement. The client now uses the model as a strategic tool to establish purchasing performance targets.Concrete Manufacturer Contextualizes Supplier Price Increase
Challenge
A mid-Atlantic concrete company purchasing manager needed insight into recent, aggressive cement maker price moves.Solution
IHS used its price forecasting model to compare escalation in measured input costs against cement price increases from 1980 to the present. We determined that while cement prices grew only 14%, input costs jumped over 40%. Although the industry enjoyed average productivity growth, the differential between cost and price escalation implied significant erosion in cement maker margins.Results
IHS insight enabled the purchasing manager to understand the cement price hikes as an attempt by cement makers to restore their margins.Chemical Company Achieves $8 Million Procurement Cost Savings
Challenge
A chemical company was looking to unlock supply chain cost savings.Solution
IHS provided the tools and data for the company to build a composite spending index. Armed with this information, the company asked various suppliers for price adjustments.Results
The client saved US$8 million or approximately 10% of its procurement costs.
-1Contracts
Truck Manufacturer Saves over $2 Million with Lower Escalator Rate
Challenge
A truck manufacturer needed help negotiating a long-term supply contract valued at US$2.5 million.Solution
We used the IHS Cost Analyzer to derive a 1.4% escalation rate compared to the supplier’s 2.5% index. When confronted with this more appropriate index, the supplier conceded the lower rate.Results
The client saved over US$2 million by identifying the right series for its escalator clause.Electrical Equipment Manufacturer Avoids Significant Price Increase
Challenge
An electrical equipment manufacturer who needed to purchase small electrical engines had accepted a 5.0.% price increase in the previous year’s contract.Solution
The IHS Pricing and Purchasing analyst showed that in the coming year there was little increase expected in prices for steel, copper, aluminum, and brushings, the major inputs in motor production. The analyst then provided data showing that in the prior year, the nationwide producer price index for small motors had actually declined slightly.Results
The client's buyer, when confronted with this information, challenged his supplier's requested price increase. The supplier, over the course of subsequent negotiations, conceded to the client's position, and no price increase was paid.Sport Equipment Manufacturer Saves $2.2 million with Price Analysis
Challenge
A recreational boat and water sport equipment manufacturer was paying too much for engines from automobile manufacturers. He needed these engines to power inboard and outboard motors.Solution
IHS showed that motor prices had been falling fairly continuously since 1992 and forecasted continued decline during the next several years. The client confronted its supplier with this data, along with the IHS forecast of flat or declining engine component prices, and demanded a price adjustment.Results
The client saved US$2.2 million on one equipment contract negotiation.Truck Manufacturer Recognizes Unreasonable Price Quotations
Challenge
A truck manufacturer needed to compare three separate windshield glass bids, which included 3.5% to 8.0% in price increases. One supplier cited labor costs as the reason behind the price increase. The client deemed all three quotes as too high and wanted to validate the proposed increases.Solution
We analyzed recent price movements in a wide range of glass products and found no price increases greater than 4.0% relative to the previous year. For most of the products, prices had remained flat or had actually fallen during the previous three years. IHS also examined raw material costs and found either flat of declining prices during the previous year and a half. Finally, IHS looked at labor market conditions and documented wage pressures resulting in 4.0 – 8.0% wage increases compared to the previous year. On closer examination, we discovered that overtime payments accounted for most of these. We therefore argued that the high overtime levels were not sustainable.Results
The client was able to use this information to challenge the requested price increase. The net result was that the manufacturer and its suppliers initiated a program as part of a broader supply chain management initiative. The manufacturer is working to share information with its suppliers as part of a long-term relationship, the ultimate goal of which is controlling cost increases.
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Solutions Presentation
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