High energy costs sting manufacturing companies

Manufacturing companies of all sizes are feeling the heat, as their bottom line is threatened by rising energy prices.

The high cost of gas and electricity is causing the price of materials to rise, putting pressure on all parts of the supply chain, Western Michigan Business Review reports.

Jim Ross, vice president of innovation and technical services for economic development group Right Place, told the news source that "the supply chain folks have not seen prices this bad ever before."

"Energy is probably the leading cause of some of those rising costs," he added.

Ross explained that oil, coal, natural gas and electricity prices affect a manufacturing company's costs in regard to transportation, petrochemical feed stocks and travel.

Manufacturing is not the only sector that may find high energy prices affect cash flow. Landscaping firms are also noting an impact on their working capital, with one owner, Ron Lester, telling the Daily Herald that the trend has "affected the bottom line dramatically."