Materials and bought-in parts: measure prices against their drivers

How prices are changing

Metals and intermediate products are rising much more sharply than machinery, motor vehicles and vehicle parts, or consumer goods. Copper and semi-finished copper products cost 31.4% more on the domestic market in September 2026 than a year earlier; for imports, the increase in August was 38.1%. Imported consumer goods, by contrast, were 0.5% cheaper in August 2026 than in the same month of the previous year. According to the Statistisches Bundesamt (Destatis), imported energy and intermediate goods became significantly more expensive in the wake of the Iran war. These figures do not justify a blanket increase for all parts or for imported goods for resale.

What makes up the price

The price of a part is made up of material, processing (labour, machine time and energy), overheads and profit, plus tooling, packaging and freight. The higher the processing share, the less the raw material price affects the price of the part. For goods for resale, the factors are the purchase price, exchange rate, freight, customs duty and the terms: discounts, rebates, payment terms and cash discounts. For contract manufacturing and outsourced services, they are hourly rates, quantities and scrap.

For goods and materials, we work the same way as for cleaning, logistics or IT: your supplier provides evidence of its cost drivers, and we measure the price against them. If copper rises, the copper share of the price rises. The rest follows wages, energy and freight, each with its own index.

Which index to use

For input materials from Germany, the producer prices of the Statistisches Bundesamt (Destatis, statistic 61241), for example for copper and semi-finished products, pig iron and steel, or basic chemicals. For imported goods, the import prices (statistic 61411), for example for aluminium, plastics in primary forms or electronic components. For the wage share, the collective pay settlement in your supplier’s industry. Use the most detailed matching series and link only the share of the price that the driver accounts for.

What applies to imports and payment terms

For steel and aluminium from third countries, the price may therefore include certificate and customs costs. Have both shown separately, so that they are not also built into the base price and can fall away again depending on the quota or origin.

Six points where contracts for materials and bought-in parts cost money

1. Material price adjustment clause, upwards only. The clause passes on increases but not reductions, or it applies to the whole price even though only the material share fluctuates. Agree the index, base month, share and threshold, applying in both directions. Our price adjustment clause guide shows how.
2. No cost breakdown. Without shares for material, processing, energy and freight, no increase can be verified. Ask for the costing of your most important parts to be disclosed, at least as shares.
3. Exchange rate without a clause. If your supplier buys in dollars or another currency, one side bears the exchange rate risk without this being regulated. Agree a public reference rate on a fixed reference date and a threshold beyond which both sides adjust.
4. Fragmented volumes. Several plants buy the same material from several suppliers, each at its own price. Pool demand across sites and part families and negotiate volume tiers on the total quantity.
5. Payment terms and cash discount. Longer payment terms bring liquidity; a cash discount brings a better price. Weigh one against the other. Payment terms of more than 60 days after receipt of the goods or services are only effective if they are expressly agreed and not grossly unfair to the supplier (§ 271a BGB).
6. Single source with no alternative. With only one supplier, you negotiate without a comparison. Qualify a second source for important parts or obtain comparative quotes. For steel from third countries, smaller tariff-free quotas have applied since 1 July 2026, with 50% duty above them: check the origin and quota before you switch.

Before you agree to an increase

Ask your supplier in writing:

• What shares of our price do material, processing, energy and freight account for?
• Which index and which reference month do you base the increase on?
• In which currency do you buy the input materials, and which exchange rate did you use in your calculation?
• What carbon border adjustment or customs costs are included in the price, and how do you show them?
• When will you pass on lower raw material prices to us?

For the review, you need: the supply contracts and price agreements, the costing or cost breakdown for the most important parts, the orders and invoices for the last twelve months by part and site, and the notice of the increase.

How we renegotiate materials and bought-in parts

We analyse orders and invoices by part, site and supplier, uncover the cost drivers of the most important parts and measure the price against the appropriate index. We negotiate price adjustment clauses that work both ways, pooled volumes, and rules for exchange rates and payment terms. Our senior negotiators negotiate large contracts in person, together with your buyer. We handle the many small contracts in a standardised, software-supported way according to your rules. You sign off every deal.

Frequently asked questions about materials and bought-in parts

Sources

• Statistisches Bundesamt (Destatis): producer prices in September 2026, press release of 20 October 2026
• Statistisches Bundesamt (Destatis): import prices in August 2026, press release of 30 September 2026
• European Commission: Carbon Border Adjustment Mechanism (CBAM), definitive period since 1 January 2026
• European Commission, Access2Markets: New EU safeguards on steel imports from third countries, 30 June 2026
• § 271a Bürgerliches Gesetzbuch (German Civil Code)