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Oil price surge will affect Midstate businesses

SWATARA TOWNSHIP, Pa. (WHTM) -- Oil can be found in so many everyday items and that means businesses to even consumers will be paying more for all sorts of materials.

Staff with Total Plastics located on Derry St. in Swatara Township say crude oil plays a huge role in their products.

"That's the base for all plastic resin is crude oil so it's definitely going to impact us," General Manager Michele Truhlar said.

Truhlar has been in the plastics business for 34 years and hasn't seen anything like this since 2008 but knows this time around is going to hit even harder.

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"It's a trickle-down it will take some time before that impacts us but I'm sure over the next several months we will see price increases based on the crude oil, crude oil prices going up," Truhlar said.

“We have to figure out something here because rates can't just keep going up or else we're not going to sell anything nobody is not going to buy anything," Sale representative Kevin Mondi said.

A lot of the plastics they use go into things such as signs and even certain plants and crude oil is crucial.

The company also says the oil price increase is a battle to make deals with trucking companies.

"So if you're increasing wages, and increasing gas for trucks it's going to be hard to get material," Mondi said.

To stay proactive the company is trying to purchase as many products as they can before prices begin to skyrocket at an even higher cost.

"You place an order in place with the manufacture and they'll raise the price of the product while it's still on order after you already negotiated a price so it makes it very challenging and we foresee that being worse," Truhlar said.

Workers say with the prices of oil they are concerned the freight will take even longer to ship to their customers.

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