A View from the Driver’s Seat: State of the Industry
As we bid farewell to summer and find ourselves well into Q3, the economic climate continues to present some harsh realities. Like all businesses in the US, Glenco is facing an alarming amount of pressure from rising costs in all aspects of our operation.
Since the start of 2025, we have experienced price increases in cost of goods, raw materials, supplies, labor, shipping, insurance, and even garbage collection.
In our January View from the Driver’s Seat blogpost, we discussed the growth opportunities in solar power and the anticipated concerns for our industry over the next 12 months. (We don’t like to gloat, but we were right on both counts!)
As predicted, solar power has continued to improve and expand, and Glenco has promoted and sold many solar-powered traffic safety products. We have supplied a large volume of the following products to municipalities in the tri-state area, and demand remains high:
* Solar Powered In-Road Warning Light Systems (IRWL)
* Solar Powered Rectangular Rapid Flashing Beacon Systems (RRFB)
* Solar LED Stop Signs
* Solar LED Pedestrian and School Crossing Signs
* Solar Powered Message Boards
* Solar Flashing Barricade Lights
* Solar Powered School Warning Systems
* Solar Powered Spot Lights
In addition to the expected growth of solar products, we identified two major concerns as we looked ahead to 2025, and those issues are taking shape right now: tariffs and rising costs (inflation).
Regardless of where you fall on the political spectrum, basic economics correlates rising costs with inflation. Higher costs cannot be absorbed completely by the manufacturer over the long term, so at some point the increase will be passed on to the end user. Simply put, goods and services are becoming more expensive.
Tariffs are designed to make American goods and services more competitive in the international world of trade, but there is a side effect that is beginning to manifest here in the US.
When our goods are being charged a 40% tariff on imports, domestic manufacturers see an opportunity to generate more profit by raising domestic goods prices by up to 25%. In general, this tactic has led to higher market prices regardless of where the goods are sourced.
This scenario is playing out right now in the raw aluminum market and has caused prices to rise over 30% so far this year. The foreign tariff of 25-50% on imported aluminum products has sparked a domestic aluminum cost increase of over 25%. This creates an illusion that domestic product is cheaper than the tariffed imports, but we are still paying 25% more than we did 3 months ago.
Currently, it looks as if higher costs are here to stay. Glenco will always operate with the best interest of the customer in mind, maintaining the highest levels of respect, integrity, quality and service. We will continue to monitor changes in policy and their effect on our operations. As always, we will remain transparent, vigilant, and poised to adjust to fluctuations in the market. If costs come down, we will be the first to lower our prices!
We are always available to provide resources and information about our products, services and pricing, please don’t hesitate to contact us here.
