“Why is wire so expensive?” Supply and demand plays a huge part in this but there are also a number of other factors that contribute to the high cost of manufacturing, producing and distributing goods as widely used as steel wire rod. If you’re using a baler day in and day out at your facility then you already know the importance steel wire rod plays into your department’s everyday functions and productivity.
It’s rare to find a facility that manufactures baling wire in areas local to its most fervent users. Thus, the wire needs to be trucked out to various locations and warehouses, stored and then shipped out when need be. These expenses, though inconsequential at first glance, add up to the greater cost of baling wire to the end user. It is imperative that users such as yourself have an understanding on the supply chain that your wire goes through in order to reach its final destination. Wire prices are not arbitrarily set by companies supplying the product but determined by much larger factors that are often out of the hands of your vendor. Timing is also another issue but less so in allowing you to secure a good deal on pricing. If you see an increase in the goods and services you use on a daily basis in your own life, then it should come as little surprise to see such an increase in the materials you use at work.