Consuming Industries Survey
Tuesday | 18 January, 2011 | 3:09 am

Rising costs

By Lauren Duensing

January 2011 - In 2004, a small percentage of survey respondents to Modern Metals' Second Annual Consuming Industries Survey mentioned health care costs as one of their top concerns. In fact, it was lumped in with margin health, currency manipulation, taxes, government and changing technology under "other."

Times have changed. Sixty-three percent of OEM, 57 percent of service center and 65 percent of fabricator respondents to the Ninth Annual Consuming Industries survey cited health care as one of the top challenges they will face in 2011.

"Health care insurance is the largest overhead expense on our income statement," says David Cox, president and COO of The Bradbury Co. Inc., Moundridge, Kan. "We are fortunate to have great hospitals and doctors in our country, and our citizens should have full access to this health care. Private enterprise is better suited to run the health care industry than the government. The American people seem to believe the bill was passed and we are off to the races. However, the Department of Health and Human Services has yet to write the rules which will drive implementation of the bill. Our costs have already gone up by adding the uninsured adult children of our employees and eliminating co-pays. I'm certain we will end up with even higher health costs as more regulation comes out. The result will be rethinking how and who pays for health insurance."

"The ultimate growth rate of the cost of delivering health care in the United States cannot exceed the industrial productivity growth rate over a long period; otherwise, it will become economically unstable as a private activity," says Mark Breckheimer, executive vice president, Namasco Corp., the U.S. subsidiary of Klockner & Co. "If this happens, only the wealthy will receive it. The prospect of the legal imposition of an ill-conceived, politically motivated, economically irrational solution to this problem should be a major concern of shareholders and employees alike, as a result. Businesses cannot bear an ever-increasing percentage of the cost of providing health care as a benefit because it would eliminate profitability, so unless a change is made in either cost or expectation, individuals of average means will be forced to work and allocate most of their wages to pay for it. To avoid this, and in order to make health care available to the majority of U.S. citizens, we need to eliminate the cost redundancies of excessive legal settlements and the like, together with multiple layers of cost duplication in the existing delivery system. The sooner we set about this, the better." MM

Current Issue


October 2014

Gearing up for 2015
Tackling foreign policies, regulations, trade balances and capital plans, here are forecasts for virtually everything.





Modern Metals on Twitter

White Papers

More White Papers >

Industry Partners

Alloy Bar Products

Custom Rubber Products

Metals Distribution

Service Centers

Sierra Alloys Royal Rubber Co. ThyssenKruppnMaterials NA Heidtman Steel Products


Cutting Software

Perforated & Expanded Metal

North American Steel Alliance
Channel Alloys SigmaTEK Systems McNichols Co. Reliance Steel & Aluminum Company


Cutting Systems

Plasma Technology

Thickness Gauges

Gerdau Messer Cutting Systems, Inc. ESAB Welding & Cutting Products Compusource Corporation




Enmark Systems, Inc.
Steelmax Hougen Manufacturing, Inc. Allor Manufacturing Inc.

Stainless Steel

CNC Cutting (Plasma, Waterjet, Laser, Router)

Financial Services

Artco Group Stainless Sales Corp.
Multicam Inc. BMO Harris Bank Churchill Steel Plate Ltd Straub Metal International

Coated Coil

GE Capital Finance Ranger Steel

Stainless, Nickel, Aluminum, Pipe, Tube & Bar

American Nickeloid Metals

Investment Banking

Precision Grinding

Prudential Stainless & Alloys, L.P.
Centria Coating Services Brown Gibbons Lang & Company Joco Precision Grinding


Metal Coaters

Laser Technology

Profiling Software


Coil Processing

AltaMAR, Inc. FastCam Pty Ltd. Central Steel Service, Inc.
Bradbury Group Amada America, Inc.

Rolled and Extruded Aluminum Products

Parker Steel Co.
Braner USA LVD Strippit Aleris Rolled Products SSAB
Burghardt + Schmidt GmbH Mitsubishi Laser-MC Machinery Systems, Inc.

Sawing Technology

Summit Steel Corporation
Butech Bliss

Machining Centers

Behringer Saws, Inc.

Steel Fabrication

Formtek-Maine Handtmann CNC Cosen International, Inc. Voortman Corporation
Herr-Voss Stamco

Material Handling

Cut Technologies Metal


IMS Systems, Inc. Canrack Metal Center Systems DoALL Sawing Products TSI Titanium
Leveltek Samuel Strapping Systems HE&M Saw


Machine Concepts Steel Storage Systems Inc. Kasto Carlson Tool & Manufacturing Corp.
Red Bud Industries The Caldwell Group, Inc. Metlsaw Systems

Tube & Pipe


Metal Alloy Analysis & Verification Independence Tube Corp.

Copper & Brass

Thermo Scientific Niton Analyzers Scotchman Industries, Inc. National Tube Supply Company
Christy Metals Inc.

Metal Finishing & Deburring

Wikus Saw Technology Specialty Pipe & Tube
Farmer's Copper Supermax Tools


Turnkey Finishing System












TECHNI Waterjet


twitter facebook linkedin rss