The best-performing parts suppliers are more likely to have high prices than other parts suppliers, according to research by Technomic.
The firm looked at more than 7,000 parts suppliers and found that only 8 percent of those who reported having low or no price increases were found to have a high percentage of parts suppliers reporting price increases.
For parts suppliers who reported high price increases, the research found that they had an average percentage increase of about 12 percent.
The findings are similar to a study by the consulting firm Accenture that found that part suppliers who posted the most price increases in 2016 had a median percentage increase between 10 percent and 17 percent.
The research by Accenture was released Monday and is based on data from a study conducted in May and June that found an average of 6 percent of U.S. manufacturing companies reported price increases each month, and the average percentage of those companies reporting price hikes was about 15 percent.
“This means that manufacturers have been reporting higher prices over the past year, while they have been cutting costs,” said Dan Siegel, Technomic’s head of research.
“We think this is an area that is ripe for more innovation in the industry.”
For more information on Technomic, please visit its website.