Low production costs in the Middle East and Asia have kept prices of Oriental rugs at a low and steady level for a long time. However, it seems as if an Oriental rug price hike may be close and recent surveys among Oriental rug retailers have indicated that they are now buying up stock from rug manufacturers before the new prices take effect.
Increased production costs associated with increased wages, labor shortage, and more expensive materials are some of the factors that contribute to the expected price increase. Shipping costs are also on the rise.
Labor shortage is not really something that the Oriental rug industry has had to face in the past, but during the recent recession laborers left for jobs in other industries. This left a void that is not easily filled now when business is picking up again. Furthermore, increased wages adds more pressure on the manufacturers. In India, for example, wages for rug weavers have nearly doubled.
Retailers are trying hard to do their part in shielding their customers from the increased manufacturing costs, but it seems that it is only a matter of time before we see noteworthy retail price increases on Oriental rugs.
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