Problems
What will AGI do for Commodity Margin Squeeze?
Producers and wholesale distributors of undifferentiated goods operate in markets where buyers dictate the price. Because the product is treated as a commodity, revenue ceilings are strictly enforced by global spot markets and competitor parity. Meanwhile, input costs for raw materials, energy, and freight fluctuate unpredictably, trapping these businesses in a persistent squeeze where profitability erodes daily.