Forecast of boiler prices

[chrisfallis]

As a student of economics I wonder what the slowing of the world economy will do to boiler prices over the next year. On one hand, fossil fuel prices have dropped and there may be less demand for wood fired boilers than there was 6 months ago. Many boiler manufacturers saw rising steel and copper prices and boosted the price of their boilers. It was painful to consumers, but I'll bet a bunch figured that a price increase would just lead to a longer payback period for a boiler, so they just sucked it up and paid the price increases. That is about where I was last summer. Now that commodity prices are dropping, manufacturers could hold the line on prices and increase their profits to make up for getting hammered last summer with increases in raw material prices that they didin't pass along to consumers. However, I suspect that manufaturers are going to see a big drop in demand for their goods and come spring, there may be some bargains to be had out there.

So what are your thoughts? Prices up or down by the end of winter?

 

[muncybob]

I believe we are in unchartered water regarding world currencies and economies...so anything we may have learned in class or otherwise just may not apply. There are some that would even tell you to look for a worldwide economic melt down soon and the emergence of one worldwide currency(I can't even wrap my mind around that!). But, I for one hope that prices plunge in the spring since that's when we will be ready to make our purchase.

 

[Jeff S]

I currently own a conventional wood boiler but would love to upgrade to a gasifier so I'm hoping the prices drop or at least stay the same until I'm able to afford to purchase one.

 

[Duetech]

Purchase of a boiler/gassifier depends on availability and cash to purchase. A lot of people who would have had the cash may be looking for work/cash to sustain the bare necessities. I think you may be on to something if the trend is slow and not a spike downward. If your inventory is your lively hood you will "turn" your product or "go down with the ship".

 

[88rxn/a]

cozy heat has a sale right now on EKO's

 

[carbon neutral]

I was hoping some more people would start importing boilers from Europe, the recent spike in fuel prices also brought up interest in alternative fuels. Unfortunately now that fuel prices are back down and the economy has everyone worried fewer people will be looking for the long term investment that a wood boiler represents. You can currently buy an EKO 40 with Laddomat 21 in Europe for $2,500 at retail pricing. I don't know how they can be sold in the US for $6,000 or more. Usually to get that kind of mark up you need a gun!

 

[heaterman]

Regardless of worldwide economic conditions we are likely in for an extended period of above average, if not severe inflation beginning in the near future. There is no way it can't happen from what I know and have been reading. Right now the US dollar has been stable if not gaining on other world currencies. This is a major ingredient in the plunge of oil prices. This recent strength is due to the "de-leveraging" of all the financial institutions and countries that have been affected by the meltdown of the US banking system.

Once this de-leveraging is accomplished the US dollar is going to pancake. It can't be any other way. The Fed has printed Trillions of dollars backed by nothing at all. How much longer do you think China, Korea, Saudi Arabia, Japan, et al, are going to accept promissory notes or even our currency as payment for our trade with them? The oil producing nations have already been having discussions regarding using another currency than the US dollar as the benchmark. That's not a good thing. I'll wager that within a year oil prices will be back where they were this summer or higher. I have read forecasts of inflation in the upper teens being the best case scenario.

In short; if you are anticipating making a major expenditure it would be prudent to do it sooner rather than later.


Here's some related reading:

http://www.financialsense.com/Market/wrapup.htm

(broken link removed to http://www.financialsense.com/fsu/editorials/gnazzo/2008/1124.html)

(broken link removed to http://www.financialsense.com/fsu/editorials/delta/2008/1125.html)

 

[BrownianHeatingTech]

Regardless of worldwide economic conditions we are likely in for an extended period of above average, if not severe inflation beginning in the near future. There is no way it can't happen from what I know and have been reading. Right now the US dollar has been stable if not gaining on other world currencies. This is a major ingredient in the plunge of oil prices.

Not to mention the futures markets collapsing.

When folks no longer are willing to gamble with some funds, instead decide to sit on their assets rather than risk them, the speculation ends, and prices of the commodity drop...

The drop in fuel prices is a very bad thing - it's nice right now, but it indicates that folks are scared stiff, and bodes poorly for the economy.

I'm glad that I have some silver and gold...

Joe