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Rising Input Costs Spell Trouble for Manufacturers

Lahore: The local manufacturing sector is attempting to mitigate the effects of rising raw material costs in order to safeguard customers, but it appears that price increases are unavoidable for a number of goods.

The primary raw materials utilised by several industries in the production of machinery of various types, including those producing electrical appliances and their spare parts, automobiles, and parts, include rubber, steel, copper, and aluminium.

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After the Covid-induced recession, factories around the world are struggling to recover from the shock due to a 13-month spike in raw material prices of 27–68%.

Following the Covid-caused recession, the increase in raw material costs is adversely affecting local manufacturing sectors, particularly the auto sector.

He added that it was a difficult period for the local auto sector that had just started recovering from the consequences of Covid-19, saying that it would adversely affect manufacturers’ capacities to meet consumer expectations during these challenging times.

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