Orlando businesses are preparing for potential price increases as gas prices reach $3.71 per gallon statewide and geopolitical tensions in Iran create market uncertainty. Christian Diaz, president of LM Industrial in Orlando, said his metal fabrication company has already seen aluminum prices increase 50 percent over the past year. The company specializes in metal fabrication and structural steel installation and was initially impacted by tariffs before the current price volatility.
“Over the past year or so, we have seen aluminum prices increase about 50 percent,” said Christian Diaz, the president of LM Industrial in Orlando. The company has maintained steady prices for about three months, but the ongoing conflict in Iran threatens to disrupt that stability. “If we see aluminum prices go up, we may have to adjust our prices to our customers,” Diaz said.
Beatriz Carrion, CEO of LM Industrial, said the company has avoided passing price increases to customers so far, including rises in fuel surcharges on deliveries. “We definitely have been keeping up and being very proactive and creating forecasts trying to predict the market,” said LM Industrial CEO Beatriz Carrion. AAA data shows the average gas price in Florida reached $3.71 per gallon, with the Orlando metro area averaging $3.921 per gallon.
Dr. Matthew Imes, an associate professor of finance at Stetson University, warned that transportation costs will affect virtually all consumer goods across Florida. “Since virtually all the goods we consume in this country either get to us from one part of the country to the other or from international to domestic, they arrive either by ship, container or on the back of an 18-wheeler. All of that is going to be affected by gas prices,” said Dr. Matthew Imes, an associate professor of finance at Stetson University. Oil prices shot up to over $100 a barrel, with AAA reporting that 60 percent of what customers pay at the pump is based on crude oil prices.
Food truck operators face particularly severe impacts from rising fuel costs, as demonstrated by similar businesses in Illinois where gas prices jumped from under $3 a gallon to nearly $4 a gallon at some locations. Kaylin Cohn, owner of food truck bakery business KLC Creations, typically pays just under $1,000 annually to fuel her generators but expects costs to rise significantly. “We typically prepare for it, but with them skyrocketing so quickly, it was something that kind of hit us the wrong way,” Cohn said.
Molly Hart, AAA spokesperson, explained that multiple factors contribute to the current price surge beyond typical seasonal increases. “Even though every year we see this uptick in prices due to seasonal refineries going to seasonal maintenance and also switching over to the summer blend that’s more expensive to make, we’re seeing an uptick in prices because of geopolitical tensions in Iran,” Hart said. The combination of seasonal refinery maintenance and geopolitical instability creates an abnormal price environment for Florida consumers.
Imes predicted that while current grocery store inventory may temporarily shield consumers from immediate price increases, measurable increases are likely in the coming weeks. “A lot of the produce and the things we are consuming were already here at the grocery stores. We haven’t seen an increase yet, but there probably will be a measurable increase at least for the duration of the conflict,” Imes said. Products with shorter shelf lives, particularly produce, are expected to show price increases sooner than other goods as supply chains adjust to higher transportation costs.