Hello everyone,
We hope you’re doing well and have been enjoying the start of your summer so far! There were a lot of fun traditions we were all forced to miss out on last year and we are excited at the prospect of making up for lost time over the next few months. We’ve been busier than ever here at East Coast Electrical Equipment Company. With the influx of commerce nationwide and the rapid development of growing areas like our own Triangle region here in North Carolina, business is booming. In fact, we’ve just finished pouring the pad for a brand new building at our headquarters! We’re proud to announce that we’re breaking ground on a new 12,000 sq ft facility that will exclusively house all brand new GE and Siemens motors. We look forward to sharing more about this project as it continues to be built.
The primary reason we’re reaching out to you today, however, is to let you know about something very important going on in the electric motor industry. Though our new facility will be a top-of-the-line space for housing new motors, we don’t advise you to wait until it’s complete to make your next motor purchase. That’s because we have a number of reasons to believe that right now is the best time to purchase an electric motor.
You’ve likely read a great deal in the news lately about the return of inflation. Consumer prices have ascended more than 4% from where they were a year ago, which is the largest increase in more than a decade. The United States typically sees average price increases of 2.5% annually, and we’ve been growing at about that pace since 1986. Beyond the obvious interruptions we’ve had in the supply chain due to Covid-19, there are a number of other factors causing this new jump, including higher labor costs, higher freight costs, higher transportation demand, port delays, increased demand in some products, higher commodity prices, and shortages in a wide number of resources including gasoline, lumber, and shipping containers, which all inadvertently influence the availability of many consumer goods. It’s a perfect storm.
One shortage that directly affects our industry is the current copper shortage. Copper is a large component of many electric motors due to its high electrical conductivity. It enhances the electrical energy efficiency of a motor and is commonly used in coil windings, bearings, collectors, brushes, and connectors of many electric motors. Recently, Copper hit an all-time high with a rapid price increase of 27% in 2021. This surge has been caused in part by the growing focus on renewable energy and the production of more electric motors and equipment. While that’s a great thing for the planet and electric motor companies, the growing demand for this resource has caused electric motors to be more expensive— a trend we predict will continue in the coming years.
With the large number of triggering factors at play, we have no cause to believe that inflation rates will return to normal anytime soon. Beyond that, with the demand for copper specifically, we believe that the cost of electric motors will only continue to increase with or without a stable inflation rate. Now is the time to buy. Prices of both new and rebuilt electric motors have already increased and are on a path to keep rising. If you foresee an electric motor purchase in the near future, we strongly urge you to make that purchase as soon as possible. Buying an electric motor today could very likely mean money in the bank for you tomorrow.
Whether you’re looking for a solid investment for your business or anticipate a future purchase that you could be saving money on now, we’re here to help you with your electric motor needs. Reach out to us today with any questions you may have or to learn more about our extensive inventory of new and used electric motors from the best brand names in the industry!
You can view our inventory of new GE AC motors here.
You can view our inventory of new Siemens AC motors here.
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