Closed Thread
 
Thread Tools Search this Thread Display Modes
 
Old 03-01-2018, 05:20 AM   #1
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 404
How would an Aluminum Tariff affect the Values of our Trailers?

Just curious if anyone is familiar with the sourcing of aluminum for modern day AS trailers. There is talk of an impending tariff on imported aluminum and steel on the business shows today. Any ideas how that might affect the cost of new and used trailers?

Please, no political discussions. Lets keep it on topic and discuss the economic impact as it relates to the cost of goods that make up Airstreams.
__________________

Tomzstream is offline  
Old 03-01-2018, 05:58 AM   #2
Rivet Master
 
dznf0g's Avatar
 
2007 30' Classic
Oswego , Illinois
Join Date: Jul 2010
Posts: 10,248
Images: 5
To make aluminium the ore (bauxite) must first be mined. The main sources of bauxite are in*Australia, South America and Africa, but other countries including China,*Jamaica, India and USA also have large amounts of the ore.
__________________

__________________
-Rich-

"If the women don't find you handsome, they should at least find you handy." - Red Green
dznf0g is offline  
Old 03-01-2018, 06:22 AM   #3
Rivet Master
 
mimiandrews's Avatar
 
1966 22' Safari
Hilltop Lakes , Texas
Join Date: Jun 2008
Posts: 1,585
In general, tariffs drive up prices and restrict free trade. Way back in college, Economics 101 or thereabouts, I was taught we are better off without them.
mimiandrews is offline  
Old 03-01-2018, 07:09 AM   #4
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 404
There was some expectation the tariff would be announced today. Last I heard, all imports of aluminum would be taxed at 10%, which is less than the 25% or so for steel. I was thinking Alcoa was the source for the AS panels (the clearcoat prepped roll aluminum). There is a lot of idled capacity in the US, between Alcoa and Century. The latter makes high quality aircraft grade aluminum for defense purposes. In any case, the tariff is expected to raise prices for both imported and domestic aluminum production. Since China began dumping a few years ago, prices have actually rebounded about 10% in the last year. Not sure if that has been passed on to AS buyers yet. I imagine Thor has some pretty well hedged contracts. Maybe not.
Tomzstream is offline  
Old 03-01-2018, 09:11 AM   #5
Rivet Master
 
1996 25' Excella
Tillsonburg , Ontario
Join Date: Aug 2014
Posts: 983
Question is where is the special grade Aluminum for AS made? I doubt it comes from Canada. If USA then there should be no change. The tariff is paid to the US government by the exporter, but in the case of Canada we export in US dollars so we either sell at a competitive price or we don't make the sale, and we also have the 10% extra charge that comes off the bottom line. Same goes for US manufacturers....market forces (price) will rule; probably will be some increased price but not that much.
JCW
JCWDCW is offline  
Old 03-01-2018, 09:25 AM   #6
Rivet Master
 
Royce's Avatar
 
1977 Argosy Minuet 6.0 Metre
Colorado Springs , Colorado
Join Date: Dec 2003
Posts: 732
Images: 9
Given the way our trailers are manufactured, I would expect very little change. Labor cost has to be one of the largest components driving price. In any case, the market will decide even it the extra cost of the aluminum was insignificant you could see it used as an excuse to raise the price if the market would stand it.
__________________
Royce (K0RKK) 146.460 simplex
Web page http://spearfishcreek.net/
AIR# 3913
'77' Minuet 6 Metre, behind a 2005 stock Jeep Rubicon with Equa-L-Zer hitch.
Royce is offline  
Old 03-01-2018, 09:37 AM   #7
4 Rivet Member
 
sbowman's Avatar
 
1972 31' Excella 500
2017 30' Classic
Grapeview , Washington
Join Date: Sep 2017
Posts: 450
Good question. Glade we ordered/bought our 2017 AS Nov. 2016. Am thinking investment appreciation. This is good.

Best regards and safe travels
__________________
Scott & Liz
2017 Classic
2016 RAM 3500 6.7
sbowman is offline  
Old 03-01-2018, 09:54 AM   #8
Rivet Master
 
GammaDog's Avatar
 
2014 25' FB Eddie Bauer
Vero Beach , Florida
Join Date: Sep 2014
Posts: 511
Images: 26
In two ways:

1. It would increase the scrap value of our trailers... I'd guess +$5/trailer.

2. It would increase the cost to build new trailers. As a result, used trailers will increase as a percentage of that. At best, the impact on a used trailer resale would be in the few hundreds of dollars... probably not even that IMO.

It will, however, give builders of trailers yet another excuse to increase the selling price and blame it on someone else!
GammaDog is offline  
Old 03-01-2018, 10:16 AM   #9
3 Rivet Member
 
vanster's Avatar
 
1967 17' Caravel
Oakland , California
Join Date: Mar 2012
Posts: 182
Images: 1
Watch China cancel Boeing orders and go to Airbus as well as building their own planes in their new factory in Tianjin. China already is selling 2 models of Buicks here along with the newest big Volvo, What is the end came with Washington other than we all pay more and Boeing does big layoffs?
vanster is offline  
Old 03-01-2018, 10:35 AM   #10
3 Rivet Member
 
PecanMan5's Avatar
 
2015 25' Flying Cloud
Currently Looking...
Hahira , Georgia
Join Date: Dec 2014
Posts: 160
I thought Thor bought it’s own Aluminum plant.
__________________
From my Pecan Tree
PecanMan5 is offline  
Old 03-01-2018, 10:51 AM   #11
3 Rivet Member
 
Currently Looking...
jackson center , Ohio
Join Date: Jan 2011
Posts: 158
Imports

Quote:
Originally Posted by Tomzstream View Post
Just curious if anyone is familiar with the sourcing of aluminum for modern day AS trailers. There is talk of an impending tariff on imported aluminum and steel on the business shows today. Any ideas how that might affect the cost of new and used trailers?

Please, no political discussions. Lets keep it on topic and discuss the economic impact as it relates to the cost of goods that make up Airstreams.
International trade Edit

The US imported nearly all the bauxite (the only commercial aluminum ore) used in producing primary aluminum. For years, the US has produced less than 1% of the bauxite used to make aluminum.

The US also imported 33 percent of the aluminum metal that was used in 2014. Of the imported aluminum, 63% came from Canada.[9]

History of US aluminum production Edit

The US used to be a much more important factor in the world primary aluminum market. As recently as 1981, the US produced 30% of the world's primary aluminum, and for many years up through 2000, the US was the world's largest producer of primary aluminum. In 2014, by contrast, the US ranked sixth in primary aluminum production, and provided only 3.5% of world production.

US production of primary aluminum peaked in 1980 at 4.64 million metric tons. Since then, US primary aluminum production has fallen by more than half, but secondary production has increased, making up much of the difference. In the 1950s and 1960s, primary production made up about 80% of the aluminum output. In 2014, primary production made up 32%, while secondary from new scrap made up 36% and secondary from old scrap made up 32% of US aluminum production.[10]
Schu is offline  
Old 03-01-2018, 11:32 AM   #12
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 404
Done deal. 25% Steel, 10% Aluminum. Applies to all markets. Lets not forget the chassis of the Airstream trailer is made of Steel. Alcoa also makes the Wheels for the Interstate and other manufacturers the wheels for the trailers. Its a metal intensive product. I expect raw material prices to rise at least 10% for trailers, so will that get passed on? The consensus here seems to be yes, and then some. I tend to agree that this will help resale values. I expect there will already be a good inflationary rise (3% or so) to trailer prices, and it might even offset the loss of the tax deduction for some.
Tomzstream is offline  
Old 03-01-2018, 11:36 AM   #13
4 Rivet Member
 
2007 23' Safari SE
2016 23' International
Fernandina Beach , Florida
Join Date: May 2013
Posts: 404
Scrap Value? Maybe you should consult Steve Martin...
Tomzstream is offline  
Old 03-01-2018, 12:07 PM   #14
New Member
 
1994 30' Excella
vancouver , Washington
Join Date: Mar 2011
Posts: 1
Just a thought..

I'm thinking Thor recently announced plans to increase factory size and employment by 300.
__________________

ndfrtrl is offline  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Will the rise in gas prices affect your summer plans? nds Off Topic Forum 123 02-26-2013 04:37 PM
How will an economic collapse affect the RV/TT lifestyle? innjtown Off Topic Forum 235 10-24-2008 05:29 PM
how does tongue weight capacity rating affect handling? Smoky Hitches, Couplers & Balls 12 10-06-2008 04:29 PM
How does new diesel fuel affect older engines Stream 1529 Tow Vehicles 9 10-19-2007 09:03 AM
Pending Pa legislation may affect YOU!! Cedars On The Road... 9 06-25-2005 10:26 PM


Featured Campgrounds

Reviews provided by

Disclaimer:

This website is not affiliated with or endorsed by the Airstream, Inc. or any of its affiliates. Airstream is a registered trademark of Airstream Inc. All rights reserved. Airstream trademark used under license to Social Knowledge LLC.




Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 03:11 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.