Interest pushes up storage costs

The cost of storing materials and parts for business has increased 24 to 36 percent over the past 12 months, with more increases expected later in the year.

A survey of purchasing executives by Purchasing World magazine says it is costing a typical manufacturer 2 to 3 percent of the value of the merchandise each month just to store the product and keep an inventory. That can add more than 30 percent to the selling price of an item manufactured more than a year ago and kept on the shelf.

The survey mainly blames soaring interest rates for the escalating prices.