Bank of America’s Savita Subramanian and her team compiled estimates. And their work offers much-needed context for investors watching energy prices.
“Energy costs are not a significant cost component for most industries — labor costs are typically the biggest cost component. In aggregate, energy costs represent less than 5% of total S&P 500 (the US market) operating costs.”
I wouldn't say it's a much larger component. However Savita is studying Huge public companies with massive buying power. Even small caps are massive comparatively. For little guys like me, we are not buying a truck load of grain or hops. It's showing up via Fed Ex, UPS, or LTL 300 days a year. When those daily boxes go from $15 to $22 because of fuel surcharges and rising prices the inpact to a small top line is noticeable.
Bank of America’s Savita Subramanian and her team compiled estimates. And their work offers much-needed context for investors watching energy prices.
“Energy costs are not a significant cost component for most industries — labor costs are typically the biggest cost component. In aggregate, energy costs represent less than 5% of total S&P 500 (the US market) operating costs.”
Is it a bigger part of your operating costs?
I wouldn't say it's a much larger component. However Savita is studying Huge public companies with massive buying power. Even small caps are massive comparatively. For little guys like me, we are not buying a truck load of grain or hops. It's showing up via Fed Ex, UPS, or LTL 300 days a year. When those daily boxes go from $15 to $22 because of fuel surcharges and rising prices the inpact to a small top line is noticeable.