We would like to first thank our customers for their continued loyalty in these uncertain times with Covid-19, inflation, crime and political upheaval. The 2021 September Updates are as follows, with rising wholesale and manufacturing costs worldwide are expected to continue to rise until at least Spring 2022. We have seen steel prices nearly triple over the last two years, but most of which has taken place since last winter into this spring. The rise in steel will affect our pricing models for new products we had planned to make, which we many have to make out of high density plastic material for our initial offerings.
For Industrial Printing & Design which is a DBA of CI; the cost of apparel has increased 7% in the last two months. This was expected with the global manufacturing of facemasks last year. We have been assured most stock items will return in Sept 2021, with others in for the Christmas season.
The Biden Administration has indicated in the news, they intend on raising taxes while America is still trying to recover from the Covid-19 shutdowns and government loans. The current belief is the small business tax hikes will be about three percent, which will add to the transport and labor costs. The total cost of high taxes will much more than three percent.
All these fees, regulations, taxes, loss of manufacturing capacity as well as inflation and global factors will continue to affect all industries and will cause pricing to continue to rise. However, payrolls will not rise fast enough to counteract some if not all the cost increases.
In the last quarter of this year, we will split off one of our dormant lines to a new LLC. This will free up Critical International to focus on the Company’s Core business. As for Industrial Printing & Design, this business will be going through some product and service changes for 2022 as well as legal entity changes, which should take place around the end of Spring 2022. IPD will be debuting a new summer line of graphic t-shirts to be offered for pre summer sales.
Critical International LLC will continue to use as many USA made products as we can, to keep money, labor in the USA.
Thank you again.