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Raw Materials Costs Could Drive Up Card-Edge Connector Tags

Prices for card-edge connectors are mostly stable, but could rise if prices for oil, copper, and gold increase.

Two materials that have a big impact on the price of card-edge connectors are resins, which are highly dependent on oil, and terminal strips, which are highly dependent on the price of copper, according to David Sideck, global strategic marketing manager for FCI USA LLC, in Etters, Pa. Then there is the cost of precious metals, including gold, which are all high, he added.

However, Sideck said "materials pricing has been relatively stable, and in some cases, have backed off a little bit from their peak."

It's no secret that the biggest cost driver has been the price of gold over the past few years, said Bill Kysiak, regional product manager, Molex Inc., based in Lisle, Ill. One way to deal with the rising cost of gold is by encouraging customers to use a lower gold content, that is if they can use 15-microinch instead of 30-microinch gold plating, according to Kysiak.

Rising labor costs in China could be another pricing factor in the future, with much of the card-edge connector production in China, noted Sideck. "There will be some pressure in the future even if there are automated processes. There is always some labor content involved."

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