inflation?

[manuellynch]

How many of you are seeing price increases as a result of truly justified inflation vs companies that are using inflationary concerns as a means of justifying price increases?

With inflation rates in China at around 10%, Vietnam at 29%, India around 11% and USA now at 5% - are there concerns out there and how are your end customers taking it?

Also - what are your views on most manufacturing moving to China but inflation rising quickly there...is this a short term concern for anyone? Once again, what if a product was made in the USA, in Canada, or in your resident country for less than an imported product from China? Does that provide a nationalistic marketing value to you as a selling tool to your end customers?

For example - we are building portions of and the final assembly of our CCFL downlights in California. The product will be about the same manufacturing price as in China (factoring transportation costs, time, etc). This was a huge selling point to our end customer - the #2 builder of homes in the USA. They saw it as a marketing selling point to end customers.

Thoughts and opinions on inflation would be appreciated - it is creeping up on us.