Funding future production

Underpricing issues: Expect manufacturer revenues for 2017 to have little relationship to current prices, as manufacturers continue selling tomorrow’s production today. Moreover, the ability of manufacturers to raise prices in the near, medium and long term has been permanently eroded. For most manufacturers current prices do not reflect costs and as margin expectations – that is, the gross margin necessary to run a thriving business – are little understood by analysts, observers, academics, researchers and even industry participants there is little possibility that the dire consequences of continued underpricing will be addressed.