A China stimulus package can impact a small US precision machine shop by increasing demand for raw materials like steel, aluminum and copper. This can cause the prices of these raw materials to increase.
Stimulus Packages
A stimulus package is a set of economic policies that are used to stimulate a slow economy. These policies may include lower interest rates for businesses and consumers as well as more government spending. A stimulated economy increases demand for goods and services.
Demand for Copper
Of particular interest is the price of aluminum and copper. Especially copper. One of our core products is custom copper bus bars. Increased copper prices generally mean we must raise the prices of our bus bars.
This is an example of how a China stimulus package impacts a small US machine shop.
Related: Copper Demand Projected to Increase Through 2030
Status of China Stimulus
As of today, China has instituted some measures like reducing interest rates and given some assistance that targets infrastructure, property and businesses. Some believe that the China economy won’t grow much until the government increases direct support for individuals.
About C&C Machine
We manufacture custom copper bus bars in addition to providing precision CNC machining services. We are strategically located in Oklahoma, USA.
